Nigeria: ExxonMobil Commits $1 Billion To Usan Infill Project

U.S. oil major ExxonMobil and its partners have committed $1 billion to the Usan Infill Project in Oil Mining Lease (OML) 138 offshore Nigeria, marking a significant investment aimed at boosting crude oil production in the West African country.

ExxonMobil’s Nigerian affiliates Managing Director, Jagir Baxi, announced the investment commitment during the 25th NOC Energy Week Conference and Exhibition in Abuja.

The investment decision is expected to increase production from the Usan field through the drilling of additional wells and the development of supporting subsea infrastructure.

The project forms part of ExxonMobil’s broader strategy to sustain output from its deepwater assets in Nigeria while strengthening the country’s upstream oil sector.

Baxi said the investment underscores ExxonMobil’s long-term commitment to Nigeria and reflects confidence in the country’s improving investment environment and ongoing reforms in the oil and gas industry.

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The announcement comes as Nigeria seeks to attract fresh upstream investments following the implementation of the Petroleum Industry Act and other measures aimed at improving the competitiveness of its energy sector.

The Usan field, located about 100 kilometres offshore in the eastern Niger Delta, is one of Nigeria’s major deepwater producing assets.

Production from the field began in 2012.

The block is operated under a Production Sharing Contract (PSC) with NNPC Limited.

Other partners in OML 138 include Chevron, TotalEnergies and Nexen, a wholly owned subsidiary of CNOOC.

The new investment is expected to support Nigeria’s efforts to increase crude oil production, enhance government revenues and create employment opportunities across the oil and gas value chain.

ExxonMobil remains one of Nigeria’s largest international oil investors, with interests in both offshore and deepwater operations through its Nigerian affiliates.

Commenting on the announcement, the Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan, said the investment decision was particularly significant because Esso Exploration and Production Nigeria, ExxonMobil’s Nigerian affiliate, had not undertaken any drilling operations since 2016.