ExxonMobil and its partners will invest $1 billion in the Usan Infill Project offshore Nigeria, marking the company’s return to drilling operations in the country after nearly a decade. According to Reuters, the investment will add an estimated 40,000 barrels of oil per day to Nigeria’s crude production and forms part of the country’s broader efforts to attract fresh upstream investment and boost output.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said the project will be developed by Esso Exploration and Production Nigeria, an ExxonMobil affiliate that operates OML 138, which contains the Usan oilfield under a production-sharing contract with NNPC Ltd. ExxonMobil Nigeria Managing Director Jagir Baxi confirmed the investment during an energy conference in Abuja, while NUPRC Chief Executive Oritsemyiwa Eyesan said the project is expected to deliver first oil within 18 months, following seismic studies that identified new drilling opportunities.
The commitment represents ExxonMobil’s first drilling campaign in Nigeria since 2016 and signals renewed confidence in the country’s deepwater sector following recent regulatory reforms aimed at improving the investment climate. The announcement comes as Nigeria intensifies efforts to increase crude oil production through the development of both offshore and onshore assets, while the regulator also continues to issue new exploration licences to encourage additional investment in the upstream industry.
For Nigeria’s energy sector, the Usan Infill Project reinforces growing investor confidence in deepwater exploration and production. Analysts say the investment could support the country’s ambition to raise oil output, strengthen export revenues, and attract additional international capital into offshore developments, helping to sustain Nigeria’s position as Africa’s largest oil producer.
