Esso Exploration and Production Nigeria (Offshore East) Limited, an affiliate of ExxonMobil, has commenced on-block activities for the $1 billion Usan Infill Project in Oil Mining Lease (OML) 138, a development expected to increase Nigeria’s crude oil production by up to 40,000 barrels per day. The company announced the project at the ongoing NOG Energy Week in Abuja, describing it as a major milestone in the development of the Usan deepwater field. The project is expected to sustain and increase production from the asset.
According to ExxonMobil, the Usan Infill Project is part of the broader Usan Field Development Plan and follows the acquisition and processing of high-quality seismic data in 2024, which identified new investment opportunities within the field. The company said the project represents a cumulative investment of about $1 billion by Esso and its partners in OML 138, reflecting continued confidence in Nigeria’s deepwater oil sector.
ExxonMobil disclosed that first oil from the project is expected within 18 months, describing it as a short-cycle investment that will significantly increase production from the Usan Floating Production Storage and Offloading (FPSO) facility.Chairman and Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, said the project reinforces the company’s long-term commitment to Nigeria’s offshore oil industry. He noted that the investment demonstrates confidence in Nigeria’s deepwater resource base and the company’s commitment to responsible resource development.
Baxi also commended the Federal Government for reforms aimed at improving the investment climate in the deepwater oil and gas sector, saying the measures have strengthened investor confidence. He acknowledged the support of the company’s partners in OML 138, as well as the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board and NNPC Limited for facilitating the project’s commencement.
The company said the project highlights the importance of strong partnerships in advancing development and production in Nigeria’s deepwater sector while creating value for stakeholders.Speaking at the signing ceremony, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Oritsemeyiwa Eyesan, described the investment as a major boost for Nigeria’s deepwater oil industry. She said the $1 billion investment aligns with the commission’s objective of revitalising activities in offshore assets and increasing crude oil production.
Eyesan noted that the project marks Esso’s return to drilling in Nigeria’s deepwater acreage for the first time since 2016, describing it as a sign of renewed investor confidence and growing opportunities in the sector. She added that the Usan Infill Project represents the type of targeted investment needed to accelerate production growth, maximise existing assets and strengthen Nigeria’s position as a leading destination for deepwater exploration.
According to Eyesan, recent production challenges at some deepwater platforms highlight the need for continuous investment in facility reliability and asset integrity to ensure efficient oil production. She reaffirmed the commission’s commitment to supporting deepwater projects that will increase crude oil output, grow reserves, boost government revenue and strengthen investor confidence while maintaining operational excellence and regulatory compliance.
Eyesan congratulated Esso and its partners, noting that the investment comes at a time when many of Nigeria’s deepwater assets are operating below capacity after years of limited activity. Esso Exploration and Production Nigeria (Offshore East) Limited operates OML 138 under a production sharing contract with NNPC Limited. Its partners in the block include Chevron, TotalEnergies and CNOOC through its subsidiary Nexen.
Source: https://punchng.com/
