…first oil expected within 6 months of Aug. 2026 kick-off, set to boost Nigeria’s output by 40,000 bpd within 18 months
Oredola Adeola
ExxonMobil’s Nigerian subsidiary, Esso Exploration and Production Nigeria Limited (EEPNL), has announced the commencement of on-block execution of a $1 billion investment at the Usan Field, aimed at unlocking about 40,000 barrels per day of additional deepwater oil production from August 2026.
Advisors Reports gathered that the Usan Infill Project represents one of the first major deepwater drilling campaigns in Nigeria in nearly a decade, signaling a revival of offshore investment following years of limited activity.
Jagir Baxi, Managing Director of Esso Exploration and Production Nigeria Limited (EEPNL), disclosed this on Wednesday at the 2026 Nigeria Oil & Gas Energy Week (NOG) in Abuja, with Mrs. Oritsemyiwa Eyesan, Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), also acknowledging the development.
Providing further insight into the project, Baxi described the Usan Infill Project as a short-cycle investment designed to deliver first new production within approximately six months from the start of on-block execution, with peak output of 40,000 barrels per day expected within 18 months.
He noted that the entire investment was developed within about 18 months following the completion of advanced seismic acquisition and processing in mid-2024.
According to him, a key milestone will be marked by the arrival of a world-class deepwater drilling rig on location, alongside the sail-away of major subsea equipment to the block.
Baxi further described the investment as a significant milestone for all stakeholders, noting its alignment with Nigeria’s near-term production growth objectives.
According to him, “The investment and its new production align strongly with the aspirations of the Federal Government of Nigeria for near-term production growth.
“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.
“Peak production of 40,000 barrels per day will be achieved within 18 months, and the entire investment has been developed within around 18 months from when advanced seismic acquisition and processing was completed in mid-2024.
“In fact, over 300 million dollars has already been committed by OML 138 partners towards this project.
“In addition, the 2022 renewal of OML 138 for an additional 20 years created the most important signal of confidence in the asset, the stakeholder partnerships, and the supporting regulatory framework.”
He further revealed that the Usan Field has been producing for 14 years, during which OML 138 partners have invested about 16 billion dollars to develop the asset and produced over 350 million barrels of oil.
“In these 14 years, around 4.6 billion dollars of value has been delivered to Nigeria.
“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.”
On technology deployment, Baxi disclosed that the project will introduce two major step-out innovations within Esso Nigeria’s deepwater portfolio.
“Firstly, one of the deepwater wells to be drilled in this project will be the most complex extended-reach well ever for Usan – it will measure over 4 kilometers in length and be designed to achieve maximum resource recovery from an untapped part of the Usan field by leveraging the already-invested subsea infrastructure.
“Secondly, several wells in this project will leverage world-class intelligent drilling and completions technologies to target multiple narrow zones of oil within the trajectory of 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.”
Beyond production and technology, Baxi emphasised the human capital driving the asset’s performance.
“However, 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.
“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 that is 320 meters in length, in water depths of 850 meters, and located around 100 kilometers offshore.
“That offshore team is supported by many hundreds more Nigerians in the offices of our Concessionaire, our Regulators, and our Contractors,” he said.
Baxi reaffirmed ExxonMobil’s commitment to Nigeria’s oil and gas industry through its Esso affiliates, noting that the company remains motivated to deploy its global capabilities in scale, technology, execution excellence, and talent to grow its deepwater portfolio.
He added that the company is positioning to build on the Usan Infill Project, leveraging ongoing sector reforms to unlock further investment, growth, and value across OML 138 and other deepwater assets where it holds interests.
Engr. Eyesan in her remark said the announcement was particularly significant because Esso Exploration and Production Nigeria –ExxonMobil’s affiliate – had not undertaken any drilling operation since 2016.
“With Esso’s last drilling operation dating back to 2016, the resumption of drilling signals renewed potential and value in our deep-water acreage,” the NUPRC boss said.
Eyesan said the NUPRC remains steadfast in advancing Nigeria’s portfolio of deep-water projects, adding that such developments are essential to achieving national production targets, increasing reserves, sustaining government revenues, and bolstering investor confidence.
