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Esso Exploration and Production Nigeria Limited (Esso), the Nigerian affiliate of ExxonMobil, on Wednesday announced the commencement of on-block execution of its $1 billion Usan Infill Project.
The project is a major deepwater investment expected to boost Nigeria’s crude oil production by about 40,000 barrels per day.
Esso Nigeria Managing Director, Jagir Baxi, made the announcement at the 2026 Nigeria Oil & Gas (NOG) Energy Week in Abuja.
He said the milestone would be marked next month with the arrival of a world-class deepwater drilling rig at the Usan field in Oil Mining Lease (OML) 138, as well as the sail-away of major subsea equipment to the offshore asset.
According to him, the project is a short-cycle investment designed to deliver first oil within about six months of on-block execution, with peak production of 40,000 barrels per day expected within 18 months.
The company disclosed that more than $300 million has already been committed by the OML 138 partners, while the project was developed within about 18 months following the completion of advanced seismic acquisition and processing in mid-2024.
Baxi said the investment aligns with the federal government’s drive to rapidly increase crude oil production and strengthen Nigeria’s position in the global energy market.
He noted that the renewal of OML 138 for an additional 20 years in 2022 provided the confidence required to proceed with the investment.
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Providing further details, Esso said the Usan field has produced oil for 14 years, during which the OML 138 partners have invested about $16 billion to develop the asset and produce more than 350 million barrels of crude oil.
It added that the project has already delivered approximately $4.6 billion in value to Nigeria, while the new infill development is projected to generate an additional $1.2 billion in revenues to the country over the next four years, with the first revenues expected before the end of this year.
Esso also highlighted the deployment of advanced technologies on the project, including what it described as the most complex extended-reach well ever drilled at the Usan field, measuring more than four kilometres in length to maximise recovery from previously untapped reservoirs.
The project will also deploy intelligent drilling and completion technologies that enable multiple oil-bearing zones to be produced from a single wellbore, improving efficiency and reducing development costs.
The company said the Usan Floating Production, Storage and Offloading (FPSO) facility currently supports nearly 400 offshore personnel, the vast majority of whom are Nigerians, with hundreds more engaged across regulatory agencies, partner companies and contractors.
Esso attributed the project’s advancement to the collaboration of key industry stakeholders, including NUPRC, NNPC Ltd and the Nigerian Content Development and Monitoring Board (NCDMB), saying timely regulatory approvals and execution support were instrumental to achieving the investment milestone.
The company also acknowledged its OML 138 partners: Chevron, TotalEnergies and Nexen, for their continued collaboration.
Reaffirming ExxonMobil’s long-term commitment to Nigeria, Esso said it intends to leverage its global expertise, technology and financial strength to expand its deepwater portfolio and pursue additional investments as ongoing sector reforms improve the operating environment.
