Esso Exploration and Production Nigeria (Offshore East) Limited (EEPN(OE)L), an affiliate of ExxonMobil, has commenced on-block activities for the Usan Infill Project in Oil Mining Lease (OML) 138, a $1 billion investment expected to increase Nigeria’s deepwater crude oil production by up to 40,000 barrels per day.
The project marks another milestone in ExxonMobil’s ongoing investment in Nigeria’s offshore energy sector and forms part of the broader Usan Field Development Plan, which is designed to sustain production and maximise recovery from one of the country’s major deepwater assets.
According to the company, the Usan Infill Project follows the successful acquisition and processing of high-quality seismic data in 2024, which identified additional drilling opportunities within the field. As a short-cycle investment, first oil is expected within 18 months of identifying the opportunity.
The project represents a cumulative investment of approximately $1 billion by Esso and its partners in OML 138, underlining continued investor confidence in Nigeria’s deepwater petroleum industry despite global competition for capital.
Upon completion, the project is expected to deliver up to 40,000 barrels of incremental crude oil production per day, significantly increasing throughput at the Usan Floating Production, Storage and Offloading (FPSO) facility and supporting Nigeria’s efforts to grow oil production and export revenues.
Commenting on the development, Chairman and Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, said the investment reinforces the company’s long-term commitment to Nigeria’s upstream sector.
“The start of the Usan Infill Project reflects ExxonMobil’s continued focus on developing our deepwater portfolio in Nigeria. 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,” Baxi said.
ExxonMobil also acknowledged the Federal Government’s efforts to improve the investment climate for deepwater oil and gas projects through policy and regulatory reforms aimed at attracting fresh capital into the sector.
The company commended the collaboration of its co-venture partners in OML 138 and expressed appreciation for the support of key industry institutions, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Content Development and Monitoring Board (NCDMB), and NNPC Limited.
The Usan Infill Project is expected to strengthen Nigeria’s deepwater production capacity at a time when the country is seeking to increase crude oil output, improve energy security, and attract new upstream investments. It also highlights the strategic importance of partnerships between international oil companies, regulators and indigenous stakeholders in sustaining long-term production growth.
The latest investment reinforces ExxonMobil’s commitment to responsible resource development in Nigeria while supporting government efforts to maximise the economic value of the country’s offshore hydroc
