- Targets first oil within six months as project aims to generate $1.2 billion in new revenues for Nigeria over the next four years.
- Project builds on $16bn invested in Usan Field, where more than 350 million barrels have been produced over 14 years
- Advanced drilling technologies and 20-year licence renewal position deepwater asset for long-term production growth
Nigeria’s drive to increase crude oil production received a major boost on Wednesday as Esso Exploration and Production Nigeria Limited (Esso), an affiliate of ExxonMobil, and its OML 138 partners announced the commencement of on-block execution of the $1 billion Usan Infill Project, a deepwater investment expected to deliver an additional 40,000 barrels of oil per day (bpd) at peak production.
The project, unveiled during the 2026 Nigeria Oil & Gas (NOG) Energy Week in Abuja, will commence offshore execution next month with the arrival of a deepwater drilling rig and the deployment of major subsea production equipment to the Usan Field.
Designed as a short-cycle investment, the project is expected to deliver first oil within approximately six months of offshore execution, with peak production of 40,000 bpd targeted within 18 months.
Speaking at the event, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, Jagir Baxi, said more than $300 million had already been committed by the OML 138 partners, adding that the 2022 renewal of OML 138 for an additional 20 years provided the confidence needed to unlock the investment.
“The 2022 lease renewal of OML 138 for an additional 20 years was the most important signal of confidence for the asset, for the stakeholders and for the supporting regulatory framework,” Baxi said.
He noted that the project progressed from advanced seismic acquisition completed in mid-2024 to execution in about 18 months, underscoring the impact of regulatory support and stakeholder collaboration in accelerating deepwater investments.
The Usan Infill Project is being developed by the OML 138 partnership comprising ExxonMobil, Chevron, TotalEnergies and Nexen.
According to Baxi, the Usan Field has attracted approximately $16 billion in cumulative investment over the past 14 years, producing more than 350 million barrels of crude oil and generating an estimated $4.6 billion in value for Nigeria.
The new infill development is expected to contribute an additional $1.2 billion in revenues to Nigeria over the next four years, with the first inflows anticipated before the end of 2026.
Beyond increasing production, Esso said the project will deploy two advanced deepwater technologies aimed at maximising recovery while improving operational efficiency.
One of the planned wells will be the most complex extended-reach well drilled at the Usan Field, stretching more than four kilometres to access previously untapped reservoirs through existing subsea infrastructure.
Several additional wells will employ intelligent drilling and completion technologies capable of producing from multiple narrow oil-bearing zones through a single wellbore.
“Both of these step-outs represent the most cost-efficient investment that maximises value to Nigeria,” Baxi said.
The company said the technologies are expected to improve resource recovery while reinforcing Nigeria’s competitiveness in deepwater oil development.
Baxi said the project’s success extends beyond production volumes and revenues, highlighting the contribution of Nigerian professionals supporting operations at the offshore facility.
According to him, the Usan Floating Production, Storage and Offloading (FPSO) facility currently employs nearly 400 personnel, with 173 staff presently working offshore, the majority of them Nigerians.
“Such an achievement isn’t just the story of barrels and revenue,” Baxi said. “Nearly 400 staff work at Usan. Today, 173 of them are offshore, the vast majority being Nigerians.”
Located approximately 100 kilometres offshore in 850 metres of water, the Usan FPSO is supported by hundreds of additional Nigerian personnel working across regulatory agencies, the concessionaire and contracting companies.
Baxi attributed the project’s progress to close collaboration with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NNPC Limited and the Nigerian Content Development and Monitoring Board (NCDMB), saying timely regulatory approvals, execution support and local content decisions enabled the investment to proceed on schedule.
He also acknowledged the continued partnership of Chevron, TotalEnergies and Nexen in advancing the development.
Reaffirming ExxonMobil’s long-term commitment to Nigeria, Baxi said the Usan Infill Project represents the beginning of a broader investment pipeline across the company’s Nigerian deepwater portfolio.
“The Usan Infill Project is the first of what we hope will be a long line of opportunities at OML 138 and several other deepwater blocks,” he said.
The announcement comes as Nigeria seeks to increase crude oil production, attract fresh upstream investment and maximise value from existing offshore assets through regulatory reforms, faster project execution and advanced production technologies.
