The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has welcomed ExxonMobil’s decision to invest $1 billion in the Usan Infill Project, describing it as a strong endorsement of Nigeria’s oil sector reforms and a major boost for deepwater exploration activities.
The investment, announced at the 25th Nigeria Oil and Gas Energy Week Conference and Exhibition in Abuja, is expected to increase crude oil production from the Usan field in Oil Mining Lease (OML) 138 by approximately 40,000 barrels per day.
The regulator said the project is particularly significant because it marks ExxonMobil’s return to drilling operations in Nigeria after nearly a decade, having last undertaken a drilling campaign in the country in 2016.
In a statement issued by the commission’s Head of Media and Corporate Communications, Eniola Akinkuotu, the Commission Chief Executive, Engr. Gbenga Komolafe, said the investment demonstrates growing confidence among international investors in Nigeria’s upstream petroleum industry.
“The resumption of drilling by Esso Exploration and Production Nigeria after nearly 10 years demonstrates renewed confidence in Nigeria’s deepwater opportunities,” Komolafe said.
“This investment will strengthen production, grow reserves, boost government revenue and reinforce investor confidence in the upstream sector.”
According to him, the project validates the effectiveness of reforms introduced through the Petroleum Industry Act (PIA), which was designed to improve the investment climate and enhance the competitiveness of Nigeria’s oil and gas sector.
He noted that deepwater projects remain crucial to the country’s strategy of increasing crude oil output and expanding reserves, adding that the commission would continue to implement policies that encourage long-term investment in offshore assets.
Komolafe said the NUPRC remains committed to maintaining a transparent and predictable regulatory environment capable of attracting capital, creating jobs and promoting local content participation across the industry.
The Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, attributed the progress of the project to collaboration between the company and government agencies, including the NUPRC.
He explained that the Usan Infill Project is intended to optimise production from the Usan field through a short-cycle development plan, with first oil expected within 18 months.
Baxi said seismic data and technical evaluations identified opportunities to unlock additional value from the asset and sustain production levels in the field.
In a separate development, the NUPRC formally handed over Petroleum Prospecting Licences (PPLs) to successful companies that emerged from the 2022/2023 Mini Bid Round and the 2024 Licensing Round.
The exercise is part of broader efforts to attract fresh investments into exploration activities and increase Nigeria’s hydrocarbon reserves.
Among the firms that received licences were Broron Energy Limited, Petroli Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited and Tulcan Energy E&P Company.
The commission disclosed that a total of 19 Petroleum Prospecting Licences were awarded to 12 companies across deep offshore, shallow water and continental shelf acreages.
It noted that the awards would stimulate exploration, accelerate resource development and create additional opportunities for growth within the upstream sector.
Officials said companies whose representatives were unable to attend the presentation ceremony would receive their licences subsequently.
The twin developments—the ExxonMobil investment and the issuance of new exploration licences—come as Nigeria seeks to revitalise its petroleum industry and raise crude oil production above two million barrels per day.
With the implementation of the Petroleum Industry Act and renewed interest from both international and indigenous operators, industry stakeholders believe the country is gradually rebuilding momentum in exploration and production activities after years of declining investment.
The NUPRC expressed optimism that the latest commitments would contribute to increased output, higher government revenues and stronger energy security, while reinforcing Nigeria’s position as a leading oil and gas destination in Africa.