ExxonMobil has committed $1 billion to the Usan Infill Project in Nigeria’s deepwater offshore sector, a move expected to increase crude oil production by about 40,000 barrels per day and strengthen investment in the country’s upstream petroleum industry.

The investment was announced during the Nigeria Oil and Gas Energy Week Conference in Abuja. The project, located in Oil Mining Lease (OML) 138, is expected to deliver first oil within 18 months.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) described the investment as a significant boost for Nigeria’s oil sector, noting that it marks ExxonMobil’s return to drilling operations in the country after nearly a decade. The company’s local affiliate, Esso Exploration and Production Nigeria, last carried out drilling activities in 2016.

According to the commission, the renewed investment reflects growing confidence in Nigeria’s upstream petroleum industry and the reforms introduced under the Petroleum Industry Act. It added that increased deepwater investments would support higher crude oil production, create jobs, promote local content development and improve government revenue.

ExxonMobil’s Managing Director in Nigeria, Jagir Baxi, said the company appreciates the support of Nigerian regulators and government agencies in advancing the project. He noted that the Usan Infill Project is designed as a short-cycle development to sustain and increase production from the Usan field.

OML 138 is operated by Esso Exploration and Production Nigeria under a Production Sharing Contract with NNPC Limited. The project partners include Chevron, TotalEnergies and Nexen, a subsidiary of CNOOC.

Meanwhile, the NUPRC also presented Petroleum Prospecting Licences to successful bidders from the 2022/2023 Mini Bid Round and the 2024 Licensing Round as part of efforts to attract fresh investment into the upstream sector.

The regulator awarded a total of 19 Petroleum Prospecting Licences to 12 companies across deep offshore, shallow water and continental shelf acreages. It said the licences are expected to accelerate exploration activities, expand Nigeria’s hydrocarbon reserves and support long-term growth in the oil and gas industry.

The latest developments come as Nigeria intensifies efforts to raise crude oil production above two million barrels per day through increased investment, regulatory reforms and renewed exploration activities.