ExxonMobil
Says the company was bringing its technical capabilities and financial strength to grow its deep-water portfolio.
ExxonMobil, through its subsidiary ESSO Exploration and Production Nigeria Offshore East Limited, has announced a $1 billion investment to unlock about 40,000 barrels per day of new deep-water oil production from the Usan field, located on Oil Mining Lease (OML) 138.
Chairman, managing director, and lead country manager of ExxonMobil affiliates in Nigeria, Jagir Baxi, made the disclosure while speaking at the 25th edition of the Nigeria Oil and Gas (NOG) Energy Week in Abuja, themed “Advancing Energy Ambitions for Competitive & Resilient Economies.”
Baxi described the initiative as the Usan Infill Project, a milestone he said would be marked by the arrival of a world-class deep-water drilling rig and the sail-away of major sub-sea equipment to the block.
According to Baxi, the project aligns strongly with the Federal Government’s push for near-term production growth, noting that unlike other major greenfield final investment decisions (FIDs), the Usan Infill Project was designed to be short-cycled, with first production expected within about six months of execution and peak output of 40,000 barrels per day projected within 18 months.
Baxi said the entire investment was developed within 18 months, from the completion of advanced seismic acquisition and processing in 2024, adding that OML 138 partners had already committed over $300 million to the project.
The 2022 renewal of the OML 138 lease for an additional 20 years, he said, was a strong signal of confidence in the asset and its regulatory environment.
Giving a background of the Usan field, Baxi said the asset had been producing for 14 years, during which partners invested over $16 billion to develop it and produce more than 350 million barrels of oil. He noted that about $4.6 billion in value had already been delivered to Nigeria from the field, and projected that the new infill project would generate a further $1.2 billion in revenue for the country over the next four years.
Baxi highlighted two major technology upgrades in the project. The first, he said, involves drilling one of the most complex extended-reach wells ever undertaken at Usan, measuring over four kilometres in length and designed to maximise recovery from an untapped part of the field using existing infrastructure. The second, he explained, involves deploying intelligent drilling and completion technologies in several wells to target multiple narrow oil zones along a single well trajectory, both of which he said would ensure cost-efficient investment and maximum value for Nigeria.
Baxi paid tribute to the workforce at Usan, noting that nearly 400 staff, the vast majority of them Nigerians, work at the facility, with 173 currently offshore at more than 100 kilometres from the shore. He also commended the collaboration of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NNPC Limited as concessionaire, and the Nigerian Content Development and Monitoring Board (NCDMB), saying their swift and consistent decisions had made the investment possible. He further acknowledged the OML 138 co-venturers, Chevron, TotalEnergies, and Nexen, for their active partnership in the project’s development.
Baxi reaffirmed ExxonMobil’s commitment to Nigeria’s oil and gas ambitions, stating that the company was bringing its technical capabilities and financial strength to grow its deep-water portfolio, and expressed hope that the Usan Infill Project would be the first of many such opportunities on OML 138 and other deep-water blocks.
Speaking further, Baxi stressed the scale of the investment, pointing out that a single company was committing $1 billion to unlock 40,000 barrels per day of production, a feat he said should not be understated.
Responding, the chief executive of NUPRC, Oritsemeyiwa Eyesan, described the project as significant, noting that it aligned with the Commission’s objective of revitalising activity in Nigeria’s deep-water assets. Eyesan recalled that ESSO’s last drilling operation in the country dated back to 2016, adding that the resumption of drilling, 10 years later, signalled renewed potential and value in Nigeria’s deep-water acreage.
Eyesan said the Usan Infill Project exemplified the kind of targeted, near-term investment needed to accelerate production growth and strengthen Nigeria’s position as a leading destination for deep-water exploration. While commending new developments, she stressed the importance of equally prioritising the efficiency of existing assets, noting that recent production deferments from deep-water platforms underscored the need for continuous investment in reliability and asset integrity.
Eyesan said the Commission remained committed to advancing Nigeria’s portfolio of deep-water projects, which she described as essential to achieving national production targets, growing reserves, sustaining government revenue, and boosting investor confidence.
She reiterated the Commission’s vision to foster an investment-friendly environment, enable efficient project execution, and fully unlock the value of Nigeria’s hydrocarbon resources.
Eyesan congratulated ESSO Exploration and Production Nigeria Offshore East Limited and its partners on the milestone, noting that many of Nigeria’s deep-water assets were currently operating below capacity and that little had happened in the space over the past decade, describing ESSO’s effort as commendable.
The Usan Infill Project is expected to reinforce Nigeria’s deep-water production ambitions as the country seeks to attract fresh investment into its upstream petroleum sector.
