ExxonMobil and its partners have committed $1 billion to the Usan Infill Project in Nigeria’s offshore oil sector, a move expected to increase the country’s crude oil production by about 40,000 barrels per day (bpd).

This comes as the government intensifies efforts to attract fresh investment into the upstream petroleum industry.

The investment was announced on Wednesday, July 8, 2026, at the 25th NOG Energy Week Conference and Exhibition in Abuja by the Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi.

ExxonMobil’s Nigerian subsidiary, Esso Exploration and Production Nigeria, operates OML 138, which hosts the offshore Usan oil field under a production-sharing agreement with NNPC Limited, making the project one of the country’s major deep-water producing assets.

Also Read

What they are saying

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) praised ExxonMobil and its partners for approving the $1 billion investment for the Usan Infill Project, describing it as another positive signal of growing investor confidence in Nigeria’s upstream oil and gas sector.

  • According to the Commission Chief Executive, Oritsemyiwa Eyesan, the investment is particularly noteworthy because it marks ExxonMobil’s return to drilling activities in Nigeria after Esso Exploration and Production Nigeria suspended drilling operations in the country in 2016.
  • She added that Esso Exploration and Production Nigeria operates OML 138 on behalf of a consortium under a Production Sharing Contract with NNPC Limited. Other partners in the block include Chevron, TotalEnergies and Nexen, a subsidiary of China’s CNOOC.

Eyesan also disclosed that the Usan Infill Project is expected to deliver its first oil within about 18 months after seismic studies identified additional development opportunities in the field.

More insights

In a separate development, the NUPRC also presented Petroleum Prospecting Licences (PPLs) to successful participants in the 2022/2023 Mini Bid Round and the 2024 Licensing Round during the event.

Among the companies that received licences were Broron Energy Limited (PPL 2009), Petroli Energy Marketing and Supply Limited (PPL 269), Sahara Deepwater Resources Limited (PPLs 270 and 271), and Tulcan Energy E&P Co (PPL 2008).

Overall, the exercise covered 12 successful companies awarded 19 Petroleum Prospecting Licences spanning deep offshore, shallow-water and continental shelf acreages, reflecting the government’s strategy of expanding exploration opportunities across different segments of Nigeria’s upstream petroleum sector.

What you should know

The latest investment builds on ExxonMobil’s renewed commitment to Nigeria’s deep-water operations announced in September 2025, when the company unveiled plans to investup to $10 billion in offshore developments centred on the proposed Owo Project, a major subsea tie-back initiative.

Speaking at the time, while reaffirming ExxonMobil’s long-term commitment to Nigeria despite divesting from onshore assets, the company’s Chairman and Managing Director in Nigeria, Shane Harris, said the company was redirecting its investment focus toward deep-water projects after more than seven decades of operations in the country.

As part of that strategy, ExxonMobil also disclosed plans to spend about $1 billion annually on maintenance activities and invest an additional $1.5 billion to increase production by approximately 50,000 barrels per day over the coming years.