Key points
- ESSO says its $1 billion Usan Infill Project will generate $1.2 billion in revenue for Nigeria over four years.
- The project is expected to add 40,000 barrels of oil per day from the Usan deepwater field.
- It marks ESSO’s return to deepwater drilling in Nigeria after nearly a decade.
- NUPRC says the investment signals renewed confidence in Nigeria’s upstream oil sector.
Main story
ESSO Exploration and Production Nigeria says it expects to generate about 1.2 billion dollars in revenue for Nigeria over the next four years through the development of its one billion-dollar Usan Infill Project, a deepwater investment expected to significantly boost the country’s crude oil production.
Speaking at the Nigeria Oil and Gas (NOG) Energy Week in Abuja, the Managing Director of ESSO Exploration and Production Nigeria, Jagir Baxi, said the project would add about 40,000 barrels of oil per day to national output, marking the company’s return to deepwater drilling operations in Nigeria after almost ten years.
He explained that the development followed extensive seismic studies completed in 2024 and reached investment stage within 18 months. Although the total project is valued at one billion dollars, joint venture partners have already committed more than 300 million dollars toward execution.
According to Baxi, the development has been structured as a fast-track project, with offshore work expected to deliver first oil roughly six months after drilling begins, while maximum production is projected to be achieved within a year and a half.
He said the decision to proceed was supported by the renewal of the OML 138 licence in 2022, which extended the lease for another 20 years and provided greater certainty for long-term investment.
Looking back at the field’s performance, Baxi noted that the Usan asset has been in production for 14 years, during which more than 350 million barrels of crude oil have been produced following investments exceeding 16 billion dollars. He added that the field has already generated about 4.6 billion dollars in revenue for Nigeria.
The new campaign will utilise advanced drilling techniques, including an extended-reach well designed to access previously untapped reservoirs more than four kilometres from the drilling location. Several wells will also incorporate intelligent completion technology capable of producing from multiple reservoir zones simultaneously, improving recovery while lowering development costs.
Baxi said the investment reflects ExxonMobil’s continued confidence in Nigeria’s deepwater sector, adding that the Usan project is expected to pave the way for additional exploration and production opportunities across the company’s offshore portfolio.
Also speaking, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, described the project as an important signal that investor confidence is returning to Nigeria’s upstream industry. She noted that ESSO’s renewed drilling campaign—the company’s first since 2016—demonstrates growing momentum in the deepwater basin.
Eyesan also disclosed that regulatory interventions by the commission helped resolve issues that had delayed the project, adding that the NUPRC would continue to promote policies that encourage investment, improve operational reliability and support higher oil production from both new and existing assets.
This version is written independently rather than following the source paragraph-by-paragraph, making it suitable for publication while retaining all the important facts.
The issues
Nigeria is seeking to increase crude oil production and attract fresh upstream investment following years of declining output and delayed project approvals. Deepwater developments such as the Usan Infill Project are expected to play a key role in boosting production, expanding reserves, increasing government revenue and restoring investor confidence in the country’s petroleum sector.
What’s being said
“This investment will unlock around 40,000 barrels per day of new deepwater oil production.” — Jagir Baxi, Managing Director, ESSO Exploration and Production Nigeria
“The resumption of drilling signals renewed potential and value in our deepwater basin.” — Oritsemeyiwa Eyesan, Chief Executive, NUPRC
What’s next
ESSO is expected to begin offshore execution of the Usan Infill Project, targeting first oil within six months and peak production of 40,000 barrels per day within 18 months as Nigeria pursues higher crude output and renewed deepwater investment.
Bottom line
ESSO’s one billion-dollar Usan Infill Project represents one of Nigeria’s most significant recent deepwater investments, promising higher oil production, increased government revenue and renewed confidence in the country’s upstream petroleum industry.
