ExxonMobil, alongside its partners, is set to invest $1bn in on-block operations at the Usan Infill Project within Oil Mining Lease 138 offshore Nigeria.
The project is expected to add 40,000 barrels per day (bpd) of oil production.
An announcement regarding the investment was made at the 25th NOG Energy Week Conference and Exhibition on 8 July 2026.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) described the investment as a significant development for the country’s upstream oil sector.
NUPRC CEO Oritsemeyiwa Eyesan said that the announcement was noteworthy as Esso Exploration and Production Nigeria, an affiliate of ExxonMobil, had not conducted any drilling operations in the country since 2016.
Esso Exploration and Production Nigeria operates the Usan field under a production sharing contract (PSC), alongside the Nigerian National Petroleum Company (NNPC), with Chevron, TotalEnergies and Nexen, a wholly owned subsidiary of the China National Offshore Oil Corporation, as co-venture partners.
ExxonMobil and its partners produced the first oil from the Usan field in February 2012. At that time, the US-based company said that the Nigerian deepwater project had a production capacity of up to 180,000bpd gross.
Discovered in 2002, the Usan field was originally developed in water depths of 2,400ft using a floating production, storage and offloading (FPSO) vessel and 42 subsea wells. The development concept involved drilling 23 production wells and 19 water and gas injection wells, which were connected to the two-million-barrel capacity FPSO.
Meanwhile, in a separate development, the NUPRC issued petroleum prospecting licences (PPLs) to successful applicants from the recently concluded 2022/2023 Mini Bid Round and the 2024 Nigeria Licensing Round.
Broron Energy, Petroli Energy Marketing and Supply, Sahara Deepwater Resources and Tulcan Energy were among those receiving awards.
A total of 12 companies received 19 PPLs, covering deep offshore, shallow water and continental shelf areas, illustrating the range of available opportunities in the licensing rounds.
