ExxonMobil’s Esso Launches $1bn Usan Infill Project, Targets 40,000bpd Deepwater Boost for Nigeria

Esso Exploration and Production Nigeria Limited (Esso), a subsidiary of US oil giant ExxonMobil, has announced the commencement of on-block execution of a $1 billion Usan Infill Project that is expected to unlock around 40,000 barrels per day of new deepwater oil production for Nigeria.

The announcement was made at the NOG Energy Week 2026 in Abuja on Wednesday by Esso Nigeria Managing Director, Jagir Baxi.

Baxi, speaking on behalf of the OML 138 partners, said the investment marks a major milestone for Nigeria’s offshore sector and aligns closely with the Federal Government’s drive for near‑term production growth.

“Esso Nigeria, on behalf of the OML 138 partners, is proud to announce commencement of the on-block execution of a cumulative 1 billion-dollar investment at the Usan Field by next month that will unlock around 40,000 barrels per day of new deepwater oil production,” he said. “This milestone will be marked by the on-block arrival of a world-class deepwater drilling rig, together with sail-away of major and massive new subsea deepwater equipment towards the block.”

Fast-track, short-cycle production growth

According to Baxi, the Usan Infill Project is structured as a short-cycle investment, designed to deliver first new production within about six months of the start of on-block execution.

Peak additional production of around 40,000 barrels per day is expected within 18 months, he said, adding that the project has moved from advanced seismic acquisition and processing in mid-2024 to full investment in roughly 18 months.

“This project is different from other major greenfield FIDs in that this project is a short-cycle investment designed to deliver first new production within around six months from start of on-block execution,” he said. “Peak production of 40,000 barrels per day will be achieved within 18 months.”

He noted that more than $300 million has already been committed by the OML 138 partners to the project. The 2022 renewal of OML 138 for an additional 20 years, he added, signalled strong confidence in the asset, its partnerships and Nigeria’s evolving regulatory framework.

Deepwater legacy and new value for Nigeria

The Usan field has been producing for 14 years. Over that period, OML 138 partners have invested around $16 billion in developing and producing the field, delivering more than 350 million barrels of oil.

Baxi said the project has already generated tangible value for the country.

“In these 14 years, around 4.6 billion dollars of value has been delivered to Nigeria,” he noted. “The Usan Infill Project is expected to generate a further 1.2 billion dollars in revenues to Nigeria over the next four years, with first of these new revenues beginning to flow this year.”

Pushing deepwater technology boundaries

The Esso MD highlighted that the Usan Infill Project will introduce two major step‑out technologies within Esso Nigeria’s portfolio, reinforcing Nigeria’s position in global deepwater operations.

First, one of the wells to be drilled will be the most complex extended‑reach well ever undertaken at Usan, measuring over 4 kilometres in length. The well is designed to tap an untapped part of the field by leveraging existing subsea infrastructure to maximise resource recovery.

Second, several wells in the campaign will deploy intelligent drilling and completions technologies, enabling multiple narrow oil zones to be targeted within a single wellbore.

“Both these step-outs will ensure the most cost-efficient investment that also maximizes resource recovery, which ultimately will deliver maximum value to Nigeria,” Baxi said.

Nigerian talent at the core

Beyond capital and technology, Baxi emphasised the central role of Nigerian professionals in sustaining Usan’s performance.

“Usan’s achievements are not solely in the measure of barrels, revenues and technologies. We should also take a measure of Usan through its people,” he said. “I am proud that the Usan FPSO offshore operations is delivered by a workforce of nearly 400 talented professionals, the vast majority being Nigerians, who work day and night as one team to safely operate this massive production facility.”

The Usan FPSO, measuring 320 metres in length and operating in 850 metres of water about 100 kilometres offshore, is supported by “many hundreds more Nigerians” working in the offices of the concessionaire, regulators and contractors, he added.

Strong partnership with Nigerian institutions

Esso Nigeria also used the announcement to acknowledge the critical role of its institutional and investment partners in bringing the Usan Infill Project to fruition.

Baxi commended NUPRC, NNPCL and the Nigerian Content Development and Monitoring Board (NCDMB) for what he described as strong and proactive collaboration.

He noted that NUPRC leadership had “consistently and rapidly enabled key stepwise regulatory processes” to match the project’s short-cycle timeline; NNPCL had supported critical technical and execution decisions and ensured “top-tier execution partnerships”; while NCDMB had enabled “multiple win-win outcomes” through timely local content decisions.

He also thanked Esso’s OML 138 co‑venturers — Chevron, TotalEnergies and Nexen — for their “constant active partnership to make this investment, and the entire Usan development, the best that it can be.”

Long-term commitment to Nigeria

Baxi reaffirmed ExxonMobil’s long-term commitment to Nigeria through its Esso affiliates and said the company aims to build on the Usan Infill Project with further deepwater investments.

“ExxonMobil, through its Esso affiliates in Nigeria, is firmly committed to Nigeria’s oil and gas industry and is motivated to bring its global competitive capabilities of scale, technology, execution excellence, talented people and strong balance sheet to grow its Nigeria deepwater portfolio in line with the aspirations of Nigeria,” he said.

“We want to quickly build on this Usan Infill Project investment through ongoing sector reforms to lock in further investment, growth and value at OML 138 and across several other deepwater blocks where Esso has interests.”

The Usan Infill Project, he concluded, underscores a shared determination by government, regulators, NNPCL and industry partners to unlock Nigeria’s deepwater potential, deliver fast-track production growth and create lasting value for the country.