ExxonMobil’s Nigerian affiliate, ESSO Exploration and Production Nigeria Ltd. (EEPNL), says its $1 billion Usan Infill Project is expected to generate an additional $1.2 billion in revenue for Nigeria over the next four years, as rising global crude oil prices improve the outlook for upstream investment.
The investment, announced on Wednesday at the Nigeria Oil and Gas (NOG) Energy Week in Abuja, comes as Brent crude climbed to nearly $79 per barrel amid renewed geopolitical tensions in the Middle East, reinforcing the commercial appeal of oil exploration while posing fresh challenges for fuel-importing economies.
Managing Director of EEPNL, Jagir Baxi, said the Usan Infill Project, located in Oil Mining Lease (OML) 138, would unlock about 40,000 barrels of additional crude oil per day, marking ExxonMobil’s return to deepwater drilling in Nigeria since 2016.
He said the project had secured funding approval from partners in OML 138, with more than $300 million already committed following advanced seismic acquisition and processing completed in 2024.
According to Baxi, the development is designed as a short-cycle investment that will deliver first oil within six months of offshore execution, with peak production expected within 18 months.
“This investment will unlock around 40,000 barrels per day of new deepwater oil production,” he said, adding that the project would generate an additional $1.2 billion in revenue for Nigeria within four years.
Baxi said the 2022 renewal of the OML 138 licence for another 20 years provided the certainty required to commit fresh capital to the asset.
He noted that the Usan field has produced more than 350 million barrels of crude oil over the past 14 years following investments exceeding $16 billion, generating about $4.6 billion in revenue for Nigeria.
The latest drilling campaign will deploy advanced technologies, including the longest extended-reach well drilled at the field and intelligent completion systems designed to maximise oil recovery while reducing development costs.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs Oritsemeyiwa Eyesan, described the investment as a strong vote of confidence in Nigeria’s upstream sector.
She said the project, unlocked through regulatory interventions by the commission, signals renewed momentum for deepwater exploration after years of limited investment and underscores the importance of sustaining investments in existing producing assets to achieve Nigeria’s production targets.
“The commission remains committed to creating an investment-friendly regulatory environment capable of accelerating project delivery, improving operational reliability and attracting fresh capital into Nigeria’s upstream sector,” she said.
The investment announcement coincided with renewed volatility in global oil markets after escalating tensions in the Middle East pushed Brent crude close to $79 per barrel on concerns over potential supply disruptions.
Higher crude prices could boost Nigeria’s export earnings and government revenues while strengthening the economics of upstream projects such as Usan. However, they could also complicate efforts to lower domestic petrol prices, which remain influenced by international oil prices and exchange rate movements.
Oil and gas analyst Marcel Okeke said the latest market developments highlight the need for Nigeria to strengthen domestic refining capacity to reduce its exposure to global supply shocks.
He said expanding local refining capacity through facilities such as the Dangote Refinery, alongside rehabilitating state-owned refineries, would provide a more sustainable buffer against crude price volatility and improve the country’s long-term energy security.