ExxonMobil announces $1bn project, to add 40,000 bpd to Nigeria’s output – EnviroNews

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Esso Exploration and Production Nigeria Limited (Esso), an ExxonMobil affiliate, has announced the on‑block commencement of the landmark $1 billion Usan Infill Project, a short‑cycle deepwater investment expected to deliver 40,000 barrels per day (bpd) of new oil production to Nigeria.

The announcement was made jointly on Wednesday, July 8, at the 2026 Nigeria Oil & Gas (NOG) Energy Week in Abuja by Jagir Baxi, Managing Director of Esso Nigeria, alongside the Group Chief Executive Officer of NNPCL and the Chief Executive of NUPRC.

A Major Boost for Nigeria’s Production Ambitions

Esso confirmed that on‑block execution will begin next month, marked by the arrival of a world‑class deepwater drilling rig and the sail‑away of extensive subsea equipment to the Usan field, located in OML 138. The project is designed as a fast‑track investment, targeting first oil within six months of commencement and reaching peak output of 40,000 bpd within 18 months.

The Usan Infill Project stands out for its accelerated timeline: it was conceived and matured in just 18 months following advanced seismic acquisition completed in mid‑2024. Over $300 million has already been committed by the OML 138 partners – Esso, Chevron, TotalEnergies, and Nexen.

Baxi emphasszed that the investment aligns with the Federal Government’s push for near‑term production growth. “This project is different from other major greenfield FIDs. It is a short‑cycle investment designed to deliver new production quickly, efficiently, and competitively,” he said.

Deepwater Technology Milestones

The project will introduce two significant technological step‑outs in Nigeria’s deepwater sector:

• A record extended‑reach well exceeding 4 km in length, targeting untapped reserves by leveraging existing subsea infrastructure.
• Intelligent drilling and completions systems enabling multiple narrow oil zones to be accessed through a single wellbore.

These innovations are expected to maximise resource recovery while reducing cost, reinforcing Nigeria’s position as a global deepwater technology hub.

Economic Impact and Long-Term Value

The Usan field has produced for 14 years, during which partners invested $16 billion and delivered over 350 million barrels of oil. Nigeria has earned $4.6 billion in value from the field over this period.

The new infill project is projected to generate $1.2 billion in additional revenue for Nigeria over the next four years, with the first inflows expected this year.

Baxi highlighted the importance of the 2022 renewal of OML 138 for another 20 years, describing it as a “critical signal of confidence in the asset, the partnerships, and the regulatory framework.”

People at the Heart of Usan’s Success

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Beyond barrels and technology, Baxi celebrated the human capital driving the Usan operation. The Usan FPSO is run by nearly 400 offshore professionals, the vast majority Nigerians, working in challenging deepwater conditions 100 km offshore. Hundreds more support operations from regulatory agencies, contractors, and partner offices.

Regulatory Collaboration Praised

Esso acknowledged the pivotal roles of NUPRC, NNPCL, and NCDMB in enabling the project’s rapid progression:

• NUPRC accelerated regulatory approvals to match the short‑cycle timeline.
• NNPCL supported key technical and execution decisions, ensuring world‑class competitiveness.
• NCDMB facilitated timely local content agreements that delivered “win‑win outcomes.”

Esso also commended its OML 138 partners — Chevron, TotalEnergies, and Nexen — for their “constant active partnership.”

ExxonMobil Reaffirms Commitment to Nigeria

In closing, Baxi reiterated ExxonMobil’s long-term commitment to Nigeria’s deepwater sector. “We are motivated to bring our global capabilities – scale, technology, execution excellence, talented people, and strong balance sheet – to grow our Nigeria deepwater portfolio in line with the aspirations of the country,” he said.

He added that Esso aims to build on the momentum of the Usan Infill Project and unlock further investments across OML 138 and other deepwater blocks as ongoing sector reforms take shape.