ExxonMobil Commits US$1bn to Nigeria Deepwater Expansion

Deepwater bet on Usan under a reformed regime

ExxonMobil and its partners have committed $1 billion to on-block activities for the Usan Infill Project in OML 138 offshore Nigeria. The US$1 billion programme is the company’s first drilling campaign in the country since 2016, ending nearly a decade-long pause in new wells.

Operated by Esso under a production-sharing contract with NNPC Ltd, the project brings in partners Chevron, TotalEnergies and Nexen, a subsidiary of China’s CNOOC. The Usan Infill Project concerns the existing Usan field in OML 138. This approach allows incremental output at lower cost and shorter lead times than a greenfield deepwater project, using established subsea and processing infrastructure.

NUPRC said the project is expected to add about 40,000 barrels per day. First oil is targeted within 18 months of project launch, based on new drilling locations identified from seismic data acquired and processed in 2024. NUPRC chief executive Gbenga Komolafe said the investment aligns with the commission’s goal of reviving activity in deepwater assets.

For Abuja, the move fits a broader push to stabilise crude output and attract fresh upstream capital. The project comes after implementation of the Petroleum Industry Act (PIA), which reformed sector governance, fiscal terms and licensing processes. The Usan decision therefore acts as a practical test of whether the new regime and security improvements can draw major operators back into long-cycle offshore projects.

Signal for deepwater economics and wider deal flow

ExxonMobil Nigeria managing director Jagir Baxi framed the Usan Infill Project as part of the company’s long-term strategy to strengthen its deepwater portfolio in the country, following earlier divestments from shallow-water assets. The company aims to apply advanced subsea and reservoir technologies to safely lift production and improve recovery factors from the Usan field, while supporting Nigeria’s economic development through higher export volumes.

The ExxonMobil Nigeria investment sits within a broader deepwater pivot by international oil companies in the country. Over the past decade, several majors have moved to sell onshore and shallow-water blocks amid crude theft, security risks and ageing infrastructure, while keeping or expanding their deepwater positions that offer more secure operating conditions and clearer commercial returns.

Regulatory clarity under the PIA and NUPRC’s recent licensing rounds are reinforcing this trend. NUPRC’s licensing activity and the Usan commitment reflect renewed momentum in Nigeria’s offshore sector.

For investors, the Usan Infill Project offers a tangible measure of deepwater economics under the reformed regime. The additional 40,000 barrels per day within 18 months will show how fast incremental barrels can come to market when operators leverage existing infrastructure and supportive regulation.

Over the next two years, investors should watch how this ExxonMobil Nigeria investment interacts with future deepwater final investment decisions, NUPRC’s licensing strategy and Nigeria’s efforts to position itself as a reliable crude and liquids export hub in an increasingly selective global capital environment.

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