ExxonMobil caps $16bn Usan investments with $1bn Infill Project FID
Orisemeke Benjamin
ExxonMobil has taken a decisive step in Nigeria’s deepwater sector with the approval of a $1 billion infill drilling project at the Usan Field, Oil Mining Lease (OML) 138.
This latest investment brings the company’s cumulative commitment to the asset to $16 billion.
The announcement was made in Abuja during the 2026 NOG Energy Week by Jagir Baxi, Chairman and Managing Director of Esso Exploration and Production Nigeria Limited, an ExxonMobil affiliate.
“We are declaring it formally investment-ready,” Baxi told delegates, confirming the Final Investment Decision (FID) for the Usan Infill Project.
The Usan Infill Project is expected to deliver up to 40,000 barrels per day of additional oil production, providing a near-term uplift to Nigeria’s daily output and federal revenues. Unlike conventional greenfield developments, the project will be executed as a tie-back to the existing Usan Floating Production, Storage and Offloading (FPSO) vessel.
This infrastructure approach eliminates the need for a new FPSO, significantly lowering costs and enhancing returns under Nigeria’s Production Sharing Contract (PSC) framework.
By avoiding inflated capital expenditure, the project ensures a more favorable profit-sharing balance between investors and the Nigerian state.
Baxi disclosed that execution will commence next month, marked by the arrival of a world-class deepwater drilling rig and the deployment of major subsea equipment.
Designed as a short-cycle investment, the project is expected to deliver first oil within six months of commencement, with peak production of 40,000 barrels per day projected within 18 months.
He emphasized that the investment concept was developed in just 18 months, following advanced seismic acquisition and processing completed in mid-2024.
Already, over $300 million has been committed by OML 138 partners, underscoring strong alignment among stakeholders.“Esso Nigeria, on behalf of the OML 138 partners, is proud to announce commencement of a cumulative $1 billion investment at the Usan Field by next month,” Baxi stated.
The Usan Infill Project represents a critical milestone for Nigeria’s oil sector, combining cost efficiency with rapid execution. By leveraging existing infrastructure, ExxonMobil and its partners are positioning the Usan Field as a key contributor to Nigeria’s near-term production targets and fiscal stability.
