Esso Exploration and Production Nigeria (Offshore East) Limited, an affiliate of ExxonMobil, has commenced on-block activities for its $1 billion Usan Infill Project in Oil Mining Lease (OML) 138, targeting an additional 40,000 barrels of oil per day (bpd) to Nigeria’s crude production.

The company operates OML 138 under a production sharing contract with Nigerian National Petroleum Company Limited (NNPCL). Its co-venture partners in the block are Chevron, TotalEnergies, and Nexen, a wholly owned subsidiary of CNOOC.

The project, announced yesterday at the ongoing NOG Energy Week in Abuja, is expected to sustain and increase output from the Usan deepwater field, with first production scheduled within 18 months.

According to Esso, 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 development 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.

Chairman and Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, said the project reinforces the company’s commitment to expanding its deepwater portfolio in the country.

“The start of the Usan Infill Project reflects ExxonMobil’s continued focus on developing our deepwater portfolio in Nigeria. By applying advanced technology and leveraging our proven execution capabilities, we aim to safely and efficiently increase production and deliver value for our stakeholders while supporting Nigeria’s economic development,” Baxi said.

He added that the project demonstrates the company’s confidence in Nigeria’s deepwater resource base and commitment to responsible resource development.

Speaking at the ceremony, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, described the investment as a major milestone for Nigeria’s offshore oil industry, saying it aligns with efforts to revitalise activity in deepwater assets.

“One billion dollars invested to unlock 40,000 barrels of oil. This initiative carries particular importance as it aligns with the commission’s objective to revitalise activity within Nigeria’s deepwater assets,” Eyesan said.

She noted that the project marks Esso’s return to drilling in Nigeria’s deepwater acreage after a decade.

“With Esso’s last drilling operation dating back to 2016, the resumption of drilling signals renewed potential and value in our deepwater acreage. The government has given us renewed hope, and Esso has latched on to that,” she stated.