ExxonMobil has approved a $1 billion infill drilling project at the Usan Field, Oil Mining Lease 138, in a move expected to add 40,000 barrels per day to Nigeria’s oil output in the near term.
The investment, announced in Abuja at the ongoing 2026 NOG Energy Week, takes ExxonMobil’s total commitment to the Usan asset to $16 billion.
Jagir Baxi, Chairman and Managing Director of Esso Exploration and Production Nigeria Limited, an ExxonMobil affiliate, confirmed the Final Investment Decision at the event.
“We are declaring it formally investment-ready,” Baxi told delegates.
Unlike a new greenfield development, the Usan Infill Project will be executed as a tie-back to the existing Usan Floating Production, Storage and Offloading, FPSO, vessel.
The company said this approach removes the need for a new FPSO, significantly reducing capital expenditure and improving returns under Nigeria’s Production Sharing Contract framework. It also creates a better profit-sharing balance between investors and the Nigerian government.
Baxi said execution will begin next month with the arrival of a world-class deepwater drilling rig and the deployment of major subsea equipment.
Designed as a short-cycle project, first oil is expected within six months of start-up. Peak production of 40,000 barrels per day is projected within 18 months.
The concept was developed in 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,” Baxi said.
“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.”
The Usan Infill Project is expected to provide a quick uplift to Nigeria’s daily oil production and federal revenues at a time the country is pushing to ramp up output.
By leveraging existing infrastructure, ExxonMobil and its partners say the project combines cost efficiency with speed, positioning Usan as a key contributor to Nigeria’s near-term production and fiscal stability goals.
