ExxonMobil and its partners will invest $1 billion in the Usan Infill Project offshore Nigeria, a development expected to add 40,000 barrels per day (bpd) of oil production, Nigeria's upstream regulator said on Wednesday.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said the investment marks a return to drilling activity by ExxonMobil affiliate Esso Exploration and Production Nigeria in the country, with the company's last drilling operation dating back to 2016.
ExxonMobil's Nigerian affiliate, Esso Exploration and Production Nigeria, operates OML 138, which contains the Usan field under a production-sharing contract with NNPC. Other partners are Chevron, TotalEnergies and Nexen, a wholly owned subsidiary of China's CNOOC.
ExxonMobil Nigeria Managing Director Jagir Baxi confirmed the investment commitment at an oil conference in Abuja.
NUPRC Chief Executive Oritsemyiwa Eyesan said the Usan project is expected to deliver first production within 18 months after seismic data identified the investment opportunity.
Nigeria is seeking to attract new upstream investment and raise crude oil production through development of offshore and onshore assets.
Separately, NUPRC presented 19 prospecting licences across deepwater, shallow-water and continental shelf acreage to successful bidders from the 2022/2023 Mini Bid Round and the 2024 Licensing Round.
(Reuters - Reporting by Isaac Anyaogu; Editing by Will Dunham)