The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has described ExxonMobil’s planned $1 billion investment in the Usan Infill Project as a major milestone for Nigeria’s oil and gas industry, saying the development reflects growing investor confidence in the country’s upstream sector.
The investment, unveiled during the 25th Nigeria Oil and Gas Energy Week Conference and Exhibition in Abuja, is expected to add about 40,000 barrels of crude oil per day to production from the Usan field located in Oil Mining Lease (OML) 138.
Speaking on the development, the Commission Chief Executive of NUPRC, Engr. Gbenga Komolafe, said the project represents a significant vote of confidence in Nigeria’s regulatory and fiscal reforms, particularly those introduced under the Petroleum Industry Act (PIA).
In a statement issued by the commission’s Head of Media and Corporate Communications, Eniola Akinkuotu, the NUPRC boss noted that the project marks ExxonMobil’s return to drilling activities in Nigeria after nearly a decade, following its last drilling campaign in 2016.
“The resumption of drilling by Esso Exploration and Production Nigeria after nearly 10 years demonstrates renewed confidence in Nigeria’s deepwater opportunities,” he said.
“This investment will strengthen production, grow reserves, boost government revenue and reinforce investor confidence in the upstream sector.”
He added that deepwater investments remain critical to achieving Nigeria’s objectives of increasing crude oil output and expanding proven hydrocarbon reserves.
According to him, the commission will continue to provide a stable and investment-friendly regulatory environment to attract capital into the sector and unlock the country’s vast offshore resource potential.
He said such investments would not only enhance energy production but also create jobs, support local content development and generate additional revenue for government.
Earlier, Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, said the Usan Infill Project was conceived as a short-cycle development aimed at sustaining and increasing output from the offshore field.
Baxi explained that the investment opportunity emerged following seismic evaluations and technical studies, with first oil expected within 18 months.
He also acknowledged the support provided by the NUPRC and other government institutions in facilitating the project.
Meanwhile, the commission has presented Petroleum Prospecting Licences (PPLs) to successful bidders in the 2022/2023 Mini Bid Round and the 2024 Licensing Round, as part of efforts to stimulate exploration and attract fresh investments into the upstream industry.
Among the firms that received licences were Broron Energy Limited, which secured PPL 2009; Petroli Energy Marketing and Supply Limited, which received PPL 269; Sahara Deepwater Resources Limited, awarded PPLs 270 and 271; and Tulcan Energy E&P Company, which obtained PPL 2008.
The commission said companies whose representatives were not present at the ceremony would receive their licences at a later date.
In total, 12 companies were awarded 19 Petroleum Prospecting Licences covering assets across deep offshore, shallow water and continental shelf terrains.
According to NUPRC, the licences are expected to drive new exploration activities, support reserve growth and contribute to the long-term development of Nigeria’s petroleum industry.
The latest investment announcement and licensing awards come as the Federal Government intensifies efforts to increase crude oil production beyond two million barrels per day.
Industry stakeholders believe that ongoing reforms under the Petroleum Industry Act, coupled with renewed commitments from international oil companies and indigenous operators, could help revive exploration activities, boost production capacity and strengthen Nigeria’s position as one of Africa’s leading oil-producing nations.
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