DistantNews
Support us
🇳🇬 Nigeria /Energy & Infrastructure

ExxonMobil, Partners Kick Off $1bn Usan Project, Set to Unlock 40,000bpd Output

From ThisDay · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • ExxonMobil and its partners have launched a $1 billion Usan Infill Project in Nigeria's Oil Mining Lease (OML) 138.
  • The project aims to unlock 40,000 barrels per day of new oil production and is expected to generate $1.2 billion in additional revenue for Nigeria.
  • This fast-track deepwater investment follows a decade-long delay and is significant as ExxonMobil's affiliate had not drilled since 2016.

ExxonMobil, through its Nigerian affiliate Esso Exploration and Production Nigeria Limited, has officially commenced the $1 billion Usan Infill Project on Oil Mining Lease (OML) 138. This deepwater project, after more than a decade of delays, is designed to boost Nigeria's oil output by 40,000 barrels per day and is projected to deliver an additional $1.2 billion in revenue over the next four years.

Esso Nigeria, on behalf of the OML 138 partners, is proud to announce commencement of the on-block execution of a cumulative 1 billion-dollar investment at the Usan Field by next month that will unlock around 40,000 barrels per day of new deepwater oil production.

— Jagir BaxiAnnouncing the start of the Usan Infill Project and its expected output.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) welcomed the investment, noting its significance given that Esso Exploration and Production Nigeria had not conducted any drilling operations since 2016. Jagir Baxi, Managing Director of Esso Exploration and Production Nigeria and Chairman of ExxonMobil Affiliates in Nigeria, announced the milestone at the 25th Nigeria Oil & Gas Energy Week in Abuja. He confirmed that a specialized deepwater drilling rig and subsea equipment would arrive on the block next month.

Baxi highlighted that the Usan Infill Project is a short-cycle campaign designed for speed, contrasting it with typical multi-year greenfield projects. First oil production is anticipated within six months of the on-block execution start, with peak output expected in 18 months. The entire investment strategy was developed rapidly over approximately 18 months following advanced seismic data acquisition and processing completed in mid-2024.

This project is different from other major greenfield FIDs in that this project is a short-cycle investment designed to deliver first new production within around six months from start of on-block execution.

— Jagir BaxiExplaining the project's fast-track nature compared to traditional oil developments.

Partners in OML 138 include NNPC Limited, Chevron, TotalEnergies, and Nexen. The 20-year renewal of OML 138 in 2022 provided a crucial signal of confidence in the asset, partnerships, and the regulatory framework. The project's impact on national finances is expected to be immediate, with substantial revenue generation anticipated.

The 2022 renewal of OML 138 for another 20 years created the most important signal of confidence in the asset, the stakeholder partnerships, and the supporting regulatory framework.

— Jagir BaxiHighlighting the importance of the lease renewal for project confidence.
DistantNews Editorial

Originally published by ThisDay. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog