ExxonMobil to Invest $1 Billion in Nigeria’s Usan Oil Project
ExxonMobil one of the world’s largest international oil and gas companies and its partners will invest $1 billion in the Usan Infill Project offshore Nigeria, a development expected to add 40,000 barrels per day of oil production. The announcement was made by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday, marking a major return to drilling activity by ExxonMobil’s Nigerian affiliate, Esso Exploration and Production Nigeria.
The Usan field is located in Oil Mining Lease (OML) 138, operated under a production sharing contract with NNPC Ltd. ExxonMobil Nigeria’s Managing Director, Jagir Baxi, confirmed the investment commitment during an oil conference in Abuja. He said the project reflects ExxonMobil’s renewed confidence in Nigeria’s upstream sector after years of limited activity.
NUPRC Chief Executive Oritsemyiwa Eyesan explained that the Usan project is expected to deliver first production within 18 months, following seismic data that identified the opportunity. He noted that the investment will boost Nigeria’s crude oil output and help attract further upstream capital into both offshore and onshore assets.
ExxonMobil’s last drilling operation in Nigeria dates back to 2016, making this new investment a significant milestone for the country’s oil industry. Analysts say the project could help Nigeria meet its production targets and strengthen its position in global energy markets.
In addition to the Usan development, NUPRC also presented 19 prospecting licences to successful bidders from the 2022/2023 Mini Bid Round and the 2024 Licensing Round. The licences cover deepwater, shallow water, and continental shelf acreage, underscoring Nigeria’s efforts to expand exploration and attract new investors.
The Usan project is part of Nigeria’s broader strategy to revive upstream investment, which has slowed in recent years due to regulatory changes, security challenges, and global energy market volatility. Officials believe that the combination of new projects and licensing rounds will help restore momentum in the sector.
Industry experts say the $1 billion investment signals confidence in Nigeria’s regulatory environment and its ability to deliver returns on large scale projects. The government has been working to streamline processes and encourage partnerships that can unlock the country’s vast oil and gas reserves.
For Nigeria, the Usan project represents more than just increased production. It is also expected to create jobs, stimulate local content development, and generate revenue that can support broader economic growth. The project’s success could encourage other international oil companies to re engage with Nigeria’s upstream sector.
