ExxonMobil and its partners will invest $1 billion in the Usan Infill Project offshore Nigeria, a development expected to add 40,000 barrels per day, bpd, of oil production, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, said on Wednesday.
The investment marks a return to drilling activity by ExxonMobil affiliate Esso Exploration and Production Nigeria Limited, with the company’s last drilling operation in the country dating back to 2016.
Final Investment Decision Announced
The Final Investment Decision, FID, for the project was announced by the Chairman and Managing Director of Esso Exploration and Production Nigeria Limited, Jagir Baxi, during the 2026 NOG Energy Week in Abuja.
Baxi said the investment reinforces ExxonMobil’s long-term commitment to Nigeria’s upstream petroleum sector, noting that the company has already invested about $16 billion in the deepwater Usan asset.
“We are declaring it formally investment-ready,” Baxi told participants at the conference, officially confirming the project’s FID.
Project Design and Timeline
According to Baxi, the Usan Infill Project will be developed as a tie-back to the existing Usan Floating Production, Storage and Offloading, FPSO, vessel.
The approach eliminates the need for a new FPSO, allowing the company and its partners to accelerate production while improving the project’s economic viability.
He explained that the strategy is beneficial under Nigeria’s Production Sharing Contract, PSC, framework, where investors recover capital expenditure before profit oil is shared with the government.
Constructing a new FPSO, he said, would have increased capital costs and delayed government profit receipts.
“By utilising existing infrastructure with available processing capacity, we can bring additional barrels into the profit-sharing window much earlier,” he said.
Baxi disclosed that on-block execution will commence next month with the arrival of a deepwater drilling rig and the sail-away of major subsea production equipment.
“Esso Nigeria, on behalf of the OML 138 partners, is proud to announce commencement of the on-block execution of a cumulative $1 billion investment at the Usan Field by next month,” he said.
The project has been designed as a short-cycle investment. First oil is expected within six months of commencing offshore execution, with peak production of approximately 40,000 bpd projected within 18 months of start-up.
Baxi said the investment concept was developed within 18 months following advanced seismic acquisition and processing completed in mid-2024. More than $300 million has already been committed by the OML 138 partners.
Government and Partner Support
He noted that the Federal Government’s renewal of OML 138 for another 20 years in 2022 was critical to strengthening investor confidence in Nigeria’s deepwater sector.
Baxi also commended ExxonMobil’s partners in the asset — Chevron, TotalEnergies and Nexen — for their collaboration during project development.
The company acknowledged the support of the NUPRC, the Nigerian National Petroleum Company Limited, NNPC Ltd., and the Nigerian Content Development and Monitoring Board, NCDMB, for facilitating regulatory approvals and local content implementation.
“Leadership at NUPRC has consistently and rapidly enabled key stepwise regulatory processes. Leadership at NNPCL has strongly supported critical technical and execution decisions. NCDMB has enabled multiple win-win outcomes with on-time decisions on local content,” Baxi said.
Commitment to Nigeria
Reaffirming ExxonMobil’s confidence in Nigeria’s energy sector, Baxi said the company remains committed to delivering the Usan development successfully while supporting national efforts to increase crude oil production, attract investment and strengthen energy security.
“ExxonMobil, through its Esso affiliates in Nigeria, is committed to making this investment, and the entire Usan development, the best that it can be,” he added.
