American energy major ExxonMobil is moving closer to declaring Final Investment Decision (FID) readiness on a string of deepwater oil projects in Nigeria valued at about $10 billion, with initial activity set to begin at the Usan field through a $1 billion infill drilling programme.
The company says the first phase of the investment will focus on unlocking additional resources from the Usan asset by drilling new wells and installing fresh subsea infrastructure while leveraging the capacity of the existing FPSO. Early works have already absorbed roughly 30 per cent of the project cost, putting the development on track for an FID declaration within months.
According to ExxonMobil’s leadership in Nigeria, the company is targeting a major production ramp-up over the next five years, aiming to raise output from about 100,000 barrels per day to 250,000 barrels per day through a combination of brownfield upgrades and new greenfield development.
The Usan campaign is designed to quickly convert identified seismic resources into production. Though part of the original reservoir, the plan requires new wells, subsea tie-ins and additional facilities that will connect to the existing Usan Field FPSO.
ExxonMobil is working with Nigerian National Petroleum Company Limited, regulators and partners to meet all regulatory and contracting conditions ahead of the investment greenlight. These include the Nigerian Content Development and Monitoring Board and the Nigerian Upstream Petroleum Regulatory Commission.
Once drilling begins, production from the new wells is expected within months, providing a short-cycle boost to deepwater output.
Beyond Usan, ExxonMobil is advancing plans for the large Owowo Field, a deepwater discovery estimated to hold between 500 million and one billion barrels of oil. Development of the field is projected to cost between $7 billion and $8 billion.
Owowo will be tied back to the Usan FPSO via subsea infrastructure spanning more than 30 kilometres and could involve between 20 and 40 wells making it significantly larger and more complex than recent tieback projects in Nigeria’s offshore space.
ExxonMobil operates the asset with a 27 per cent stake alongside partners including Chevron Nigeria Limited, TotalEnergies E&P Nigeria Limited, Nexen and NNPC Ltd.
The company estimates that combined developments at Usan, Erha and Owowo could unlock up to 160,000 barrels per day in additional oil production and around 100 million standard cubic feet per day of gas.
Brownfield enhancements at Erha Field and Usan are expected to add about 60,000 bpd, while Owowo alone could contribute 100,000 bpd of crude alongside significant gas volumes routed to shore through a planned pipeline.
ExxonMobil credits recent federal government directives aimed at improving contracting timelines, fiscal incentives and local content clarity for helping to accelerate project planning.
The company says it has translated these broad policy measures into field-specific execution strategies for Owowo and Usan, covering contracting models, national content participation and commercial frameworks.
Rather than rushing announcements, ExxonMobil says it prefers to reach clear alignment with partners and regulators before publicly declaring FID, signalling certainty of execution once approvals are secured.
With preparatory milestones such as long-lead equipment orders and shore-base planning already underway, the company indicates that visible pre-FID steps will continue to emerge ahead of formal investment approvals.
If timelines hold, ExxonMobil’s deepwater expansion could mark one of the most significant upstream investment cycles in Nigeria in recent years, strengthening offshore output and expanding gas supply capacity
