ESSO invests $300m in deepwater project to add 40,000bpd to Nigeria’s oil output

ESSO Exploration and Production Nigeria Offshore East Limited has committed more than $300 million to the Usan Infill Project, a deepwater oil development expected to increase Nigeria’s crude oil production by about 40,000 barrels per day.

The project, unveiled on Wednesday during the Nigeria Oil and Gas (NOG) Energy Week 2026, is also projected to generate about $1.2 billion in revenue for Nigeria over the next four years.

Speaking at the unveiling, Chairman and Managing Director of ESSO Nigeria, Jagir Baxi, described the investment as a major contribution to the Federal Government’s efforts to boost crude oil production.

He said the project had secured funding from partners in Oil Mining Lease (OML) 138 and was designed as a short-cycle development capable of delivering first oil within six months of offshore execution, with peak production expected within 18 months.

According to Baxi, the investment marks the company’s return to deepwater drilling after nearly a decade and was made possible by the 20-year renewal of the OML 138 licence in 2022.

He noted that the Usan field has been producing oil for 14 years, during which more than $16 billion was invested in its development, resulting in the production of over 350 million barrels of crude oil.

Baxi added that the field had already delivered billions of dollars in value to Nigeria and said the new infill project would further strengthen government revenues through increased production.

He explained that the development would deploy advanced drilling technologies, including extended-reach wells and intelligent completion systems designed to access previously untapped reserves while improving operational efficiency and reducing costs.

According to him, the project demonstrates ExxonMobil’s long-term commitment to expanding its deepwater operations in Nigeria and could pave the way for similar investments in other offshore assets.

The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Mrs Oritsemeyiwa Eyesan, described the project as a strong vote of confidence in Nigeria’s upstream petroleum sector.

She noted that the drilling campaign would be ESSO’s first since 2016, signalling renewed investment in Nigeria’s deepwater basin after years of limited activity.

Eyesan said sustained investment in existing offshore assets remained critical to improving production, maintaining infrastructure and achieving the country’s oil output targets.

She added that the commission remained committed to creating a stable regulatory environment capable of attracting new capital and accelerating project delivery.

The NUPRC boss also disclosed that regulatory intervention by the commission helped resolve issues that had delayed the Usan Infill Project for years, allowing the investment to move forward.

She expressed optimism that the development would stimulate further deepwater investments and strengthen Nigeria’s position as a leading oil producer in Africa.