Nigeria welcomes ExxonMobil's $1bn deepwater investment, boosting oil production prospects

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has lauded ExxonMobil's decision to invest $1 billion in the Usan Infill Project, located in Oil Mining Lease 138. The commission described this development as a major milestone that could revitalize deepwater drilling activities and accelerate Nigeria's crude oil production goals.

The investment, announced during the 25th Nigeria Oil and Gas Energy Week Conference and Exhibition in Abuja, is projected to increase production from the Usan field by approximately 40,000 barrels of crude oil per day. Jagir Baxi, Managing Director of ExxonMobil affiliates in Nigeria, made the announcement.

NUPRC Chief Executive Oritsemyiwa Eyesan stated that this investment signifies ExxonMobil's return to drilling operations in Nigeria after nearly a decade. She characterized the renewed commitment from the oil major as a strong vote of confidence in Nigeria's upstream petroleum sector and the reforms implemented under the Petroleum Industry Act. Esso Exploration and Production Nigeria, ExxonMobil's affiliate, had not conducted any drilling operations since 2016.

“

The Nigerian Upstream Petroleum Regulatory Commission has commended ExxonMobil and its partners for committing $1bn to the on-block activities for the Usan Infill Project in OML 138.

Eyesan emphasized that the NUPRC remains committed to advancing Nigeria's deepwater projects. She highlighted that such investments are crucial for achieving national production targets, increasing reserves, ensuring sustained government revenues, and bolstering investor confidence. The resumption of drilling by Esso signals renewed potential and value in Nigeria's deepwater acreage.

The NUPRC head further stressed that increased investment in offshore projects will not only enhance crude oil production but also create employment opportunities, stimulate local content development, and improve government earnings. This comes at a time when Nigeria is actively seeking to maximize the benefits derived from its hydrocarbon resources. Baxi also commended the NUPRC and other government agencies for their role in facilitating the project.

“

With Esso’s last drilling operation dating back to 2016, the resumption of drilling signals renewed potential and value in our deep water acreage.