ExxonMobil and its partners have approved a $1 billion investment in the Usan Infill Project, a deep-water development expected to increase Nigeria's crude oil production by about 40,000 barrels per day, reinforcing fresh investment momentum in the country's upstream petroleum sector.
The investment was announced on Wednesday at the 25th NOG Energy Week Conference and Exhibition in Abuja by the Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi.
The project is located within Oil Mining Lease (OML) 138, where ExxonMobil's Nigerian subsidiary, Esso Exploration and Production Nigeria Limited, operates the Usan field under a Production Sharing Contract with the Nigerian National Petroleum Company Limited (NNPCL). The offshore asset is jointly held with Chevron, TotalEnergies and Nexen, a subsidiary of China's CNOOC.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) described the investment as a positive indication of growing investor confidence in Nigeria's oil and gas industry.
Speaking at the event, the Commission Chief Executive, Gbenga Komolafe, said the project also marks ExxonMobil's return to drilling operations in Nigeria after Esso Exploration and Production Nigeria suspended drilling activities in 2016.
According to him, seismic studies conducted on the field identified additional development opportunities, with first oil from the Usan Infill Project expected within approximately 18 months.
The announcement comes as the Federal Government continues efforts to attract new capital into the upstream sector through regulatory reforms and expanded licensing opportunities.
During the conference, the NUPRC also presented Petroleum Prospecting Licences (PPLs) to successful bidders from the 2022/2023 Mini Bid Round and the 2024 Licensing Round.
The licences were awarded to 12 companies covering 19 Petroleum Prospecting Licences across deep offshore, shallow-water and continental shelf acreages.
Recipients include Broron Energy Limited (PPL 2009), Petroli Energy Marketing and Supply Limited (PPL 269), Sahara Deepwater Resources Limited (PPLs 270 and 271), and Tulcan Energy E&P Co (PPL 2008).
The latest commitment builds on ExxonMobil's renewed focus on Nigeria's offshore operations announced in September 2025, when the company disclosed plans to invest up to $10 billion in deep-water developments centred on the proposed Owo Project.
At the time, ExxonMobil said it was redirecting investment toward offshore assets following its divestment from onshore operations after more than seven decades in Nigeria.
The company also outlined plans to spend about $1 billion annually on maintenance activities and invest an additional $1.5 billion to increase production by roughly 50,000 barrels per day over the coming years.