The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has commended ExxonMobil for investing $1 billion in Nigeria’s Usan Infill Project, a bold move aimed at boosting Nigeria’s oil production capacity.
The commitment was announced on Wednesday at the 25th NOG Energy Week Conference by Jagir Baxi, Managing Director of ExxonMobil affiliates in Nigeria.
This marks the first drilling operation by the company’s local affiliate since 2016 reflecting a restoration of confidence in the country’s deepwater oil sector.
The project, located in OML 138, is expected to add 40,000 barrels per day to production, with first oil targeted within 18 months.
Speaking at the NOG Energy week, NUPRC Chief Executive Mrs. Oritsemeyiwa Eyesan described the announcement as “particularly significant,” noting that Esso Exploration and Production Nigeria had not conducted any drilling operations in nearly a decade.
“With Esso’s last drilling operation dating back to 2016, the resumption of drilling signals renewed potential and value in our deep water acreage,” Eyesan said.
She added that such developments are “essential to achieving national production targets, increasing reserves, sustaining government revenues, and bolstering investor confidence.”
The Usan field, operated by Esso under a Production Sharing Contract with NNPC Limited, counts Chevron, TotalEnergies, and Nexen (a CNOOC subsidiary) as co-venture partners. Baxi praised the NUPRC and other government agencies for facilitating the project, which was identified as a short-cycle opportunity through seismic data.
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In another development, the NUPRC also presented Petroleum Prospecting Licences (PPLs) to winners of the 2022/2023 Mini Bid Round and the 2024 Licensing Round. Recipients included Broron Energy Limited (PPL 2009), Petroli Energy Marketing and Supply Limited (PPL 269), Sahara Deepwater Resources Limited (PPL 270 and PPL 271), and Tulcan Energy E&P Co (PPL 2008).
The exercise covers 12 successful awardees across 19 licences, spanning deep offshore, shallow water, and continental shelf acreages.
The NUPRC said the awards mark “another significant milestone” in Nigeria’s efforts to deepen upstream investment, accelerate exploration, and expand hydrocarbon reserves for long-term economic value.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X