• NUPRC welcomes investment, awards PPLs to licensing round winners
• Project execution starts in August, first oil expected in six months
• Asset to add $1.2bn new revenue to Nigeria by 2029
• OML 138 partners spend $16bn, produce 350m barrels in 14 yrs
Emmanuel Addeh and Peter Uzoho in Abuja
American energy giant, ExxonMobil, through its Nigerian affiliate, Esso Exploration and Production Nigeria Limited, yesterday announced the commencement of the on-block execution of the $1 billion Usan Infill Project in the Oil Mining Lease (OML 138), after over 10 years of delay.
The project, which is a fast-track deepwater investment, is designed to unlock 40,000 barrels per day of new oil production and deliver $1.2 billion in additional revenues to Nigeria over the next four years.
For its part, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) lauded the company and its partners for committing $1 billion to the activities at OML 138, stressing that the the announcement was particularly significant because Esso Exploration and Production Nigeria –ExxonMobil’s affiliate – had not undertaken any drilling operation since 2016.
Managing Director of Esso Exploration and Production Nigeria and Chairman of ExxonMobil Affiliates in Nigeria, Mr. Jagir Baxi, announced the milestone at the 25th Nigeria Oil & Gas Energy Week in Abuja, confirming that a world-class deepwater drilling rig will arrive on block next month alongside massive subsea equipment.
Other joint venture partners in the OML 138 are NNPC Limited, Chevron, TotalEnergies and Nexen.
“Esso Nigeria, on behalf of the OML 138 partners, is proud to announce commencement of the on-block execution of a cumulative 1 billion-dollar investment at the Usan Field by next month that will unlock around 40,000 barrels per day of new deepwater oil production,” Baxi said.
Unlike multi-year greenfield Final Investment Decisions (FIDs), the Usan Infill Project is a short-cycle campaign built for speed, Baxi said, noting that the first new production will come within six months of on-block start, with peak output of 40,000 bpd achieved in 18 months.
The entire investment was designed in roughly 18 months after advanced seismic acquisition and processing was completed in mid-2024, THISDAY learnt.
“This project is different from other major greenfield FIDs in that this project is a short-cycle investment designed to deliver first new production within around six months from start of on-block execution,” he explained. Over $300 million has already been committed by the partners ahead of on-block work.
The 2022 renewal of OML 138 for another 20 years, Baxi noted, created the most important signal of confidence in the asset, the stakeholder partnerships, and the supporting regulatory framework, the international oil firm added.
The impact on national finances will be immediate, Baxi stressed, adding that the Usan Infill Project was expected to generate a further $1.2 billion in revenues to Nigeria over the next four years, with first of these new revenues beginning to flow this year.
Baxi disclosed that in 14 years, the OML 138 partners have invested about $16 billion to develop and produce over 350 million barrels of oil. He added that that output has delivered roughly $4.6 billion in value to Nigeria. The new infill wells are designed to squeeze more from the asset using existing subsea infrastructure, maximising recovery while keeping costs competitive.
Baxi said the campaign will introduce two “step-out” technologies to Esso Nigeria’s portfolio, adding that one well will be the most complex extended-reach well ever drilled at Usan, stretching over 4 kilometres to tap an untapped part of the field.
Secondly, several wells will use world-class intelligent drilling and completion technologies to target multiple narrow zones of oil within the trajectory of a single wellbore, according to Baxi, pointing out that “Both these step-outs will ensure the most cost-efficient investment that also maximises resource recovery which ultimately will deliver maximum value to Nigeria.”
Beyond barrels and dollars, Baxi measured Usan’s impact through its people, saying the Usan FPSO is run by nearly 400 professionals, “the vast majority being Nigerians,” working offshore on the 320-meter vessel stationed in 850 meters of water, 100 km from shore.
“That offshore team is supported by many hundreds more Nigerians in the offices of our Concessionaire, our Regulators, and our Contractors,” he said.
Esso credited strong collaboration with the NUPRC, NNPC Limited, and the Nigerian Content Development and Monitoring Board (NCDMB) for keeping the project on a short-cycle timeline.
“Leadership at NUPRC has consistently and rapidly enabled key stepwise regulatory processes to match the short-cycle timeline of this investment.
“Leadership at NNPC has strongly supported critical technical and execution decisions including ensuring top-tier execution partnerships were in place to deliver this kind of deepwater investment at world-class competitiveness”, the managing director said.
He added that NCDMB enabled multiple win-win outcomes with on-time decisions on local content.
“ExxonMobil, through its Esso affiliates in Nigeria, is firmly committed to Nigeria’s oil and gas industry and is motivated to bring its global competitive capabilities of scale, technology, execution excellence, talented people and strong balance sheet to grow its Nigeria deepwater portfolio in line with the aspirations of Nigeria,” he said.
With a rig arriving next month, first oil due before year-end, and $1.2 billion in new government take projected by 2029, the Usan Infill Project signals that Nigeria’s deepwater is back in execution mode — faster, leaner, and firmly tied to jobs, revenue, and production growth.
For its part, the NUPRC commended ExxonMobil and its partners for committing $1 billion to the on-block activities for the Usan Infill Project in OML 138.
The Commission Chief Executive, NUPRC, Mrs. Oritsemyiwa Eyesan, gave the commendation at the 25th NOG Energy Week Conference and Exhibition on Wednesday, July 8, 2026.
The Managing Director of ExxonMobil affiliates in Nigeria, Jag Baxi, had announced the investment commitment at the venue which is expected to add 40,000 barrels per day.
Reacting, Eyesan said the announcement was particularly significant because Esso Exploration and Production Nigeria –ExxonMobil’s affiliate – had not undertaken any drilling operation since 2016.
“With Esso’s last drilling operation dating back to 2016, the resumption of drilling signals renewed potential and value in our deep water acreage,” the NUPRC boss said.
Eyesan said the NUPRC remains steadfast in advancing Nigeria’s portfolio of deep water projects, adding that such developments are essential to achieving national production targets, increasing reserves, sustaining government revenues, and bolstering investor confidence.
Besides, the NURPC presented Petroleum Prospecting Licences (PPLs) arising from the successful conclusion of the 2022/2023 Mini Bid Round and the Nigeria 2024 Licensing Round.
Some of the companies that were presented with their awards at the venue include: 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).
Companies whose representatives were not present will have their execution ceremonies scheduled shortly at mutually convenient dates, the NUPRC stated.
In total, the exercise covers 12 successful awardees across 19 Petroleum Prospecting Licences, comprising a balanced portfolio of deep offshore, shallow water and continental shelf acreages, reflecting the diversity of opportunities offered through the licensing rounds.
According to the NUPRC, the awards represent another significant milestone in Nigeria’s continuing efforts to deepen investment in the upstream petroleum sector, accelerate exploration activities, expand the nation’s hydrocarbon reserves, and create long-term value for the Nigerian economy.
Eyesan described the $1 billion Usan Infill Project as a landmark investment that revives confidence in Nigeria’s deepwater acreage after a decade of inactivity.
“$1 billion, 40,000 barrels per day. I don’t think we are internalising that from one company, not a multiple of companies, one company. One billion dollars investment to unlock 40,000 barrels of oil,” she said.
She noted that the government has given Renewed Hope to Nigeria’s oil and gas industry and Esso has taken advantage of that. Eyesan said the project aligns with the Commission’s push to revitalise deepwater activity and boost near-term production.
Nigeria’s investment drive in the oil sector has accelerated over the past two years as the federal government seeks to reverse years of declining production, underinvestment and investor uncertainty.
Key elements of the strategy include: Full implementation of the Petroleum Industry Act (PIA) to provide greater fiscal and regulatory certainty for investors. Also, there have been Executive Orders introducing tax incentives for deepwater projects, shortening contracting cycles and simplifying approvals to make Nigeria more competitive.
