U.S. energy giant ExxonMobil and its partners have committed US$1 billion to the Usan Infill Project in Oil Mining Lease (OML) 138 offshore Nigeria, in a move aimed at increasing crude oil production and supporting the country’s upstream petroleum sector.
The investment commitment was announced by Managing Director of ExxonMobil’s Nigerian affiliates, Jagir Baxi, during the 25th NOG Energy Week Conference and Exhibition in Abuja.
The project will involve the drilling of additional wells and the installation of supporting subsea infrastructure to boost production from the Usan oil field.
According to Mr. Baxi, the investment forms part of ExxonMobil’s long-term strategy to sustain production from its deepwater assets in Nigeria while reinforcing the country’s upstream oil industry.
He said the decision reflects the company’s confidence in Nigeria’s evolving investment climate and the ongoing reforms being implemented across the oil and gas sector.
The announcement comes as Nigeria continues efforts to attract new upstream investments following the implementation of the Petroleum Industry Act (PIA) and other policy measures designed to improve the competitiveness of the country’s energy industry.
Located about 100 kilometres offshore in the eastern Niger Delta, the Usan field is one of Nigeria’s key deepwater producing assets and has been in production since 2012.
The block is operated under a Production Sharing Contract (PSC) with NNPC Limited.
Other partners in OML 138 include Chevron, TotalEnergies and Nexen, a wholly owned subsidiary of CNOOC.
The investment is expected to increase crude oil output, generate additional government revenue and create employment opportunities throughout Nigeria’s oil and gas value chain.
ExxonMobil remains one of the country’s largest international energy investors, with substantial interests in Nigeria’s offshore and deepwater petroleum operations through its local affiliates.
Reacting to the announcement, Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan, described the investment as a major milestone, noting that Esso Exploration and Production Nigeria, ExxonMobil’s Nigerian affiliate, had not carried out any drilling activities since 2016.