ESSO Exploration and Production Nigeria says its one billion-dollar Usan Infill Project in Oil Mining Lease (OML) 138 is expected to generate 1.2 billion dollars in revenue.
Jagir Baxi, Managing Director, ESSO Exploration and Production Nigeria, ExxonMobil’s affiliate made this known on Wednesday in Abuja at the ongoing Nigeria Oil and Gas (NOG) Energy Week.
Baxi said the development would unlock additional 40,000 barrels of oil per day (bpd) from Nigeria’s deepwater assets, marking ESSO’s return to deepwater drilling after almost a decade.
The project, which has secured funding from partners in OML 138, was also projected to generate about 1.2 billion dollars in revenue for Nigeria within the next four years.
Baxi disclosed that more than 300 million dollars had already been committed to the project by OML 138 partners.
He added that the investment was developed within 18 months after advanced seismic acquisition and processing was completed in 2024.
He described the investment as a major milestone that aligned with the Federal Government’s ambition to increase crude oil production.
Baxi said the project was designed as a short-cycle investment that would deliver first oil within about six months of offshore execution, with peak production of 40,000 barrels per day expected within 18 months.
“This investment will unlock around 40,000 barrels per day of new deepwater oil production.
“The project is designed to deliver first-year production within around six months of on-block execution, with peak production within 18 months,” he said
He further said that the 2022 renewal of the OML 138 lease for another 20 years provided the confidence needed to proceed with the investment.
Reflecting on the field’s performance, he said Usan had been producing oil for 14 years, during which partners invested over 16 billion dollars to develop the asset and produced more than 350 million barrels of crude oil.
“In these 14 years, about 4.6 billion dollars has been delivered back to Nigeria. This infill project is expected to generate a further 1.2 billion dollars in revenues to the country within the next four years,” he said.
Baxi said the project would deploy advanced drilling technologies, including the most complex extended-reach well ever drilled at the Usan field, stretching previously than four kilometres to access untapped reserves.
He added that several wells would also utilise intelligent drilling and completion technologies capable of targeting multiple oil-bearing zones from a single well.
According to him, the technologies are expected to maximise recovery while reducing development costs.
Beyond production, Baxi said the project reflected the company’s long-term confidence in Nigeria’s oil and gas industry.
“ExxonMobil, through ESSO Nigeria, is firmly committed to Nigeria’s ambition in the oil and gas industry.
“We are motivated to bring our competitive capabilities and strong balance sheet to grow the deepwater portfolio, and this Usan infill project is the first of what we hope will be a long line of opportunities at OML 138 and several other deepwater blocks,” he said.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs Oritsemeyiwa Eyesan described the investment as a significant vote of confidence in Nigeria’s upstream sector.
Eyesan said the project was particularly important because it represented ESSO’s first drilling campaign since 2016, signalling renewed activity in Nigeria’s deepwater basin after years of limited investment.
“With ESSO’s last drilling operations dating back to 2016, the resumption of drilling signals renewed potential and value in our deepwater average,” she said.
She added that the Usan infill project demonstrated the importance of combining new investments with effective management of existing assets to maximise production.
“As we advance new developments, it is imperative that we equally prioritise maximising the efficiency of existing assets.
“Recent production deferments from deepwater platforms underscore the necessity for continuous investment in facility reliability and asset integrity.
“The commission remains committed to creating an investment-friendly regulatory environment capable of accelerating project delivery, improving operational reliability and attracting fresh capital into Nigeria’s upstream sector.
“The NUPRC remains steadfast in advancing Nigeria’s portfolio of deepwater projects.
“Such developments are essential to achieving national production targets, increasing reserves, sustaining government revenues and bolstering investor confidence,” she also said.
Eyesan also revealed that regulatory intervention by the commission helped unlock the project after years of delays.
She commended ESSO’s leadership for its commitment to Nigeria and expressed optimism that the Usan project would serve as a catalyst for additional deepwater investments across the country.(NAN)
