ExxonMobil commits $1bn to revive Usan oil field, eyes 40,000 bpd output

EXXONMOBIL and its joint venture partners have committed $1 billion to the Usan Infill development project in Oil Mining Lease (OML) 138, a move expected to increase Nigeria’s crude oil production by about 40,000 barrels per day.

The investment commitment was announced by Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxir, during the 2026 Nigeria Oil and Gas (NOG) Energy Week Conference, according to a statement issued by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) through its spokesperson, Eniola Akinkuotu.

Baxir commended the NUPRC and other government agencies for supporting the project, saying the regulatory environment had helped pave the way for the investment.

Akinkuotu said Esso Exploration and Production Nigeria, an ExxonMobil’s affiliate, operates OML 138 under a Production Sharing Contract with NNPC Limited. Other partners in the block include Chevron, TotalEnergies and Nexen, a wholly owned subsidiary of CNOOC.

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He explained that the Usan Infill project is a short-cycle investment aimed at sustaining and increasing production from the Usan field, with first oil expected within 18 months after seismic data identified the development opportunity.

NUPRC Chief Executive, Oritsemyiwa Eyesan, described the investment as a major milestone, noting that Esso Exploration and Production Nigeria had not undertaken any drilling campaign since 2016.

She said the resumption of drilling reflects renewed confidence in Nigeria’s deepwater assets and reinforces the value of the country’s offshore acreage.

Eyesan added that the commission remains committed to advancing deepwater projects, stressing that they are critical to achieving Nigeria’s production targets, increasing hydrocarbon reserves, boosting government revenue and strengthening investor confidence.

The NUPRC also presented Petroleum Prospecting Licences (PPLs) to successful bidders from the 2022/2023 Mini Bid Round and the 2024 Licensing Round.

The commission said Broron Energy Limited received PPL 2009, Petroli Energy Marketing and Supply Limited was awarded PPL 269, Sahara Deepwater Resources Limited secured PPLs 270 and 271, while Tulcan Energy E&P Co received PPL 2008. It added that award ceremonies for companies not represented at the event would be held at later dates.

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According to the commission, the licensing exercise covers 12 successful awardees across 19 Petroleum Prospecting Licences spanning deep offshore, shallow water and continental shelf acreages.

The NUPRC said the awards mark another step in Nigeria’s efforts to attract investment into the upstream petroleum sector and are expected to accelerate exploration, expand hydrocarbon reserves and generate long-term value for the economy.