- As Usan Project Targets 40,000bpd Boost
- Usan FPSO to raise national crude output within 18 months
NUPRC hails ExxonMobil investment, presents 19 PPLs to 12 licensing round winners
Esso Exploration and Production Nigeria (Offshore East) Limited (EEPN(OE)L), an affiliate of ExxonMobil, has committed about $1 billion to the development of the Usan Infill Project in Oil Mining Lease (OML) 138, in a major vote of confidence in Nigeria’s deepwater oil sector.
The investment, which marks the resumption of drilling activities by ExxonMobil’s Nigerian affiliate after nearly a decade, is expected to increase crude oil production by up to 40,000 barrels per day (bpd) from the Usan Floating Production Storage and Offloading (FPSO) facility, providing a significant boost to Nigeria’s drive to raise oil output and improve government revenues.
The announcement was made during the 25th NOG Energy Week Conference and Exhibition in Abuja, where the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also presented Petroleum Prospecting Licences (PPLs) to successful bidders in the 2022/2023 Mini Bid Round and the 2024 Licensing Round.
The Usan Infill Project forms part of the broader Usan Field Development Plan and follows the successful acquisition and interpretation of high-quality three-dimensional seismic data completed in 2024. The new seismic campaign identified additional drilling opportunities, paving the way for what ExxonMobil described as a short-cycle investment capable of delivering first oil within about 18 months.
Industry analysts believe the additional production will support Nigeria’s ambition of increasing crude output above its current levels while strengthening foreign exchange earnings and enhancing energy security.
Speaking at the event, Chairman and Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, said the project demonstrates the company’s long-term commitment to Nigeria’s offshore petroleum industry.
“The start of the Usan Infill Project reflects ExxonMobil’s continued focus on developing our deepwater portfolio in Nigeria,” Baxi said.
“By applying advanced technology and leveraging our proven execution capabilities, we aim to safely and efficiently increase production and deliver value for our stakeholders while supporting Nigeria’s economic development.”
He noted that the investment underscores the confidence of ExxonMobil and its partners in the country’s deepwater resource base despite prevailing global market uncertainties.
According to him, the project also demonstrates the effectiveness of recent government reforms aimed at improving the investment climate in Nigeria’s upstream petroleum sector.
Baxi acknowledged the Federal Government, NUPRC, the Nigerian Content Development and Monitoring Board (NCDMB), NNPC Limited and the company’s co-venture partners for providing the support that made the investment possible.
Esso Exploration and Production Nigeria operates OML 138 under a Production Sharing Contract with NNPC Limited. Other partners in the block include Chevron Nigeria Limited, TotalEnergies EP Nigeria and Nexen Petroleum Nigeria Limited, a wholly owned subsidiary of CNOOC.
- NUPRC Welcomes Investment
Responding to the announcement, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Mrs. Oritsemyiwa Eyesan, described the investment as a major milestone for Nigeria’s upstream industry.
She noted that ExxonMobil’s affiliate had not undertaken any drilling campaign in Nigeria since 2016, making the resumption particularly significant.
“With Esso’s last drilling operation dating back to 2016, the resumption of drilling signals renewed potential and value in our deepwater acreage,” she said.
According to Eyesan, deepwater developments remain central to Nigeria’s strategy of growing crude oil production, expanding reserves, increasing government revenues and attracting fresh capital into the upstream sector.
She reaffirmed the Commission’s commitment to creating an efficient and transparent regulatory environment that encourages investors to develop Nigeria’s abundant hydrocarbon resources.
Industry observers say the $1 billion investment sends a strong signal to international investors that confidence is gradually returning to Nigeria’s upstream sector following the implementation of reforms under the Petroleum Industry Act and other fiscal incentives introduced for deepwater operations. - ALSO READ:
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