Nigeria’s NUPRC Hails ExxonMobil’s $1 Billion Usan Project, Awards 19 New Petroleum Prospecting Licences
ExxonMobil’s investment is expected to add 40,000 barrels per day, while new licence awards aim to accelerate exploration and attract fresh upstream investment.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has welcomed ExxonMobil’s commitment to invest $1 billion in the Usan Infill Project within Oil Mining Lease (OML) 138, describing the development as a major boost for Nigeria’s deepwater oil sector and upstream investment outlook.
Speaking during the 25th NOG Energy Week Conference and Exhibition in Abuja on Wednesday, the Commission Chief Executive, Oritsemyiwa Eyesan, said the investment signals renewed confidence in Nigeria’s offshore petroleum industry after years of limited drilling activity.
The announcement was made by ExxonMobil Nigeria Managing Director Jagir Baxi, who disclosed that the project is expected to add approximately 40,000 barrels of oil per day to Nigeria’s production capacity.
Eyesan noted that the investment carries added significance because Esso Exploration and Production Nigeria, ExxonMobil’s Nigerian affiliate and operator of OML 138, has not undertaken any drilling campaign since 2016.
“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 the NUPRC chief, the Commission remains committed to advancing Nigeria’s portfolio of deepwater developments, which are critical to increasing crude oil production, expanding reserves, sustaining government revenues and strengthening investor confidence in the country’s upstream petroleum industry.
Earlier, Baxi attributed the investment decision to the collaborative efforts of the NUPRC and other government institutions in creating a more supportive operating environment for investors.
Esso Exploration and Production Nigeria operates OML 138, which contains the Usan Field, under a Production Sharing Contract with NNPC Limited. Other partners in the block include Chevron, TotalEnergies and Nexen, a wholly owned subsidiary of CNOOC.
The Usan Infill Project is designed as a short-cycle investment that will sustain and enhance production from the offshore field. ExxonMobil expects first oil within 18 months after seismic studies identified the opportunity.
NUPRC Awards 19 Petroleum Prospecting Licences
In a separate milestone at the conference, the NUPRC formally presented Petroleum Prospecting Licences (PPLs) to successful bidders from the 2022/2023 Mini Bid Round and the Nigeria 2024 Licensing Round, marking another step in the country’s efforts to attract fresh exploration investment.
Companies receiving licences included Broron Energy Limited (PPL 2009), Petroli Energy Marketing and Supply Limited (PPL 269), Sahara Deepwater Resources Limited (PPLs 270 and 271), and Tulcan Energy E&P Co. Ltd. (PPL 2008).
The Commission said execution ceremonies for awardees whose representatives were absent would be conducted at later mutually agreed dates.
Overall, the licensing exercise covers 12 successful awardees across 19 Petroleum Prospecting Licences, spanning deep offshore, shallow water and continental shelf acreages.
According to the NUPRC, the licence awards represent another significant milestone in Nigeria’s upstream reform agenda, aimed at stimulating exploration, expanding hydrocarbon reserves, attracting long-term capital investment and generating sustainable economic value for the country.
The combined announcement of ExxonMobil’s new investment and the award of additional exploration licences underscores Nigeria’s strategy to revitalise upstream oil and gas development, strengthen production capacity and reinforce its position as one of Africa’s leading petroleum investment destinations.