ExxonMobil and its consortium partners have pledged $1 billion towards the Usan Infill Project, an initiative set to significantly enhance Nigeria’s offshore crude oil production. This investment is expected to add about 40,000 barrels per day to the nation's output, aligning with the government's push to attract fresh capital into the upstream petroleum industry.
The commitment was announced on Wednesday, July 8, 2026, by Jagir Baxi, Managing Director of ExxonMobil affiliates in Nigeria, during the 25th NOG Energy Week Conference and Exhibition held in Abuja.
Usan Infill Project and Regulatory Endorsement
ExxonMobil’s Nigerian subsidiary, Esso Exploration and Production Nigeria, operates OML 138, which hosts the offshore Usan oil field. This operation is conducted under a production-sharing agreement with NNPC Limited, establishing it as one of Nigeria’s key deep-water producing assets.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) lauded ExxonMobil and its partners for approving the $1 billion investment. Oritsemyiwa Eyesan, the Commission Chief Executive, highlighted this as a positive indicator of growing investor confidence in Nigeria’s upstream oil and gas sector.
Eyesan noted the particular significance of this investment, as it signals ExxonMobil’s resumption of drilling activities in Nigeria, following a suspension of Esso Exploration and Production Nigeria’s drilling operations in 2016. The consortium partners in OML 138 include Chevron, TotalEnergies, and Nexen, a subsidiary of China’s CNOOC.
The Usan Infill Project is slated to deliver its first oil within approximately 18 months, a timeline established after seismic studies identified new development opportunities within the field.
Broader Licensing and ExxonMobil’s Renewed Focus
In a related development at the same event, the NUPRC issued Petroleum Prospecting Licences (PPLs) to successful participants from the 2022/2023 Mini Bid Round and the 2024 Licensing Round. Companies receiving licences included 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, 12 companies were awarded 19 Petroleum Prospecting Licences, covering deep offshore, shallow-water, and continental shelf acreages. This reflects the government’s strategic efforts to broaden exploration opportunities across various segments of Nigeria’s upstream petroleum sector.
This latest investment reinforces ExxonMobil’s renewed commitment to Nigeria’s deep-water operations, initially announced in September 2025. At that time, the company unveiled plans to invest up to $10 billion in offshore developments, primarily centered on the proposed Owo Project, a significant subsea tie-back initiative.
Shane Harris, ExxonMobil’s Chairman and Managing Director in Nigeria, reaffirmed the company’s long-term commitment to Nigeria in September 2025. He stated that despite divesting from onshore assets, ExxonMobil was redirecting its investment focus towards deep-water projects after more than seven decades of operations in the country.
As part of this strategy, ExxonMobil also disclosed plans to allocate about $1 billion annually for maintenance activities. Additionally, an extra $1.5 billion is earmarked to boost production by approximately 50,000 barrels per day over the coming years.
