ExxonMobil to Invest USD1.5 bn in Nigeria’s Deepwater Oil Revival, Eyes Usan Field Expansion

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ExxonMobil has unveiled plans to inject USD 1.5 billion into reviving and expanding its deepwater oil operations in Nigeria, according to the country’s oil regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The substantial investment will primarily target the Usan oilfield, located within Offshore Mining Lease (OML) 138 in the eastern part of the Niger Delta, Reuters reports.

This capital deployment is scheduled to occur between the second quarter of 2025 and 2027. It aligns with Nigeria’s broader ambition to increase daily crude oil production to 2.4 million barrels under the NUPRC’s “Project 1 Million Barrels” initiative—a strategic national effort to reinvigorate oil output and attract foreign investment in the sector.

The Usan oilfield, discovered in 2002 and brought into production by 2012, features 34 subsea wells connected through eight manifolds. ExxonMobil is targeting a Final Investment Decision (FID) on the project by the third quarter of 2025, contingent on internal approvals and securing appropriate funding partnerships.

ExxonMobil’s Managing Director in Nigeria, Shane Harris, disclosed the development during a meeting with NUPRC Chief Executive Gbenga Komolafe. Harris emphasised that the Usan upgrade is one of several deepwater projects the company plans to pursue in Nigeria. Additional projects include the Owowo and Erha fields, highlighting ExxonMobil’s continued strategic focus on Nigeria’s offshore potential.

Komolafe welcomed the investment commitment, stating it reflects renewed investor confidence and provides critical support for Nigeria’s push to revitalise its oil and gas sector.

ExxonMobil currently operates five deepwater blocks in Nigeria through its upstream affiliates. These include:

• Esso Exploration and Production Nigeria Limited
• Esso Exploration and Production Nigeria (Offshore East) Limited
• Esso Exploration and Production Nigeria (Deepwater West) Limited
• Esso Exploration and Production Nigeria (Upstream) Limited
• Esso Exploration and Production Nigeria (Deepwater Ventures) Limited

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This USD 1.5 billion investment follows a larger USD 10 billion offshore development plan announced by ExxonMobil in September 2024, reaffirming the company’s long-term commitment to Nigeria. The company also completed the divestment of its onshore assets to Seplat Energy in a USD 1.28 billion deal, initially disclosed in 2022 and finalised last year, signalling a strategic pivot toward offshore operations.