Nigeria’s oil output set to rise as ExxonMobil targets 40,000 bpd boost
Sopuruchi Onwuka
Nigeria’s drive to raise crude oil production above two million barrels per day has received a major boost as Esso Exploration and Production Nigeria (Offshore East) Limited (EEPN(OE)L), an affiliate of ExxonMobil, commenced development activities on the Usan Infill Project expected to deliver an additional 40,000 barrels of oil per day from the operated Usan deepwater field.
The development comes as Italian energy major Eni, through its subsidiary Nigeria Agip Exploration (NAE), unveiled plans to advance the development of the country’s first ultra-deepwater Zabazaba field, while Renaissance Africa Energy Company (RAEC) announced a fresh oil discovery that will accelerate its production growth plans.
The three projects were presented during the ongoing Nigeria Oil and Gas (NOG) Energy Week in Abuja, underscoring renewed investor confidence in Nigeria’s upstream petroleum sector following recent reforms aimed at improving the investment climate.
Esso disclosed that on-block activities have commenced on the Usan Infill Project in Oil Mining Lease (OML) 138, describing the development as another milestone in the company’s strategy to unlock additional value from Nigeria’s deepwater resources.
EEPN(OE)L is the operator of OML 138 under a Production Sharing Contract with NNPC Limited, while its co-venture partners include Chevron, TotalEnergies, and Nexen, a wholly owned subsidiary of CNOOC.
According to the company, the Usan Infill Project forms part of the broader Usan Field Development Plan and builds on extensive investments made in 2024, including the acquisition and processing of high-quality seismic data that identified new drilling opportunities.
Designed as a short-cycle investment, the project is expected to deliver first oil within 18 months of identifying the opportunity through seismic interpretation.
The development represents a cumulative investment of about $1 billion by Esso and its OML 138 partners, reinforcing confidence in Nigeria’s deepwater resource base despite global investment competition.
When completed, the project is expected to increase production from the Usan Floating Production Storage and Offloading (FPSO) facility by as much as 40,000 barrels per day, contributing significantly to Nigeria’s national crude oil output.
Chairman and Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, said the project demonstrates the company’s long-term commitment to expanding its deepwater operations in the country.
“The start of the Usan Infill Project reflects ExxonMobil’s continued focus on developing our deepwater portfolio in Nigeria,” Baxi said.
“By applying advanced technology and leveraging our proven execution capabilities, we aim to safely and efficiently increase production and deliver value for our stakeholders while supporting Nigeria’s economic development.”
Esso also acknowledged the Federal Government’s efforts to improve the investment environment for deepwater oil and gas projects, while commending the support of NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Content Development and Monitoring Board (NCDMB), and its co-venture partners.
The company said the project highlights the importance of strategic collaboration in unlocking Nigeria’s offshore petroleum resources while advancing responsible resource development.
In a related development, Deputy Managing Director of Nigeria Agip Exploration, Dr. Richard Orianzi, announced that the company is finalising development plans for the giant Zabazaba field, estimated to contain about one billion barrels of recoverable resources.
Speaking during NOG Energy Week, Orianzi described the project as both strategic and urgent for the company’s long-term operations in Nigeria.
He noted that Zabazaba will become Nigeria’s first ultra-deepwater field development, marking another technological milestone for the country’s petroleum industry and opening a new frontier for exploration and production.
According to him, developing the field will require cutting-edge technologies, substantial capital investment and industry leadership because of the challenging geological environment.
NAE, a subsidiary of Eni, pioneered Nigeria’s deepwater development through the Abo field, which it continues to operate in partnership with Oando Energy Resources (OER).
Also signalling further production growth, Managing Director of Renaissance Africa Energy Company, Tony Attah, announced that the company had made a new oil discovery, prompting adjustments to its field development plans to accommodate the additional reserves.
The coordinated investment programmes by ExxonMobil, Eni and Renaissance are expected to strengthen Nigeria’s upstream production capacity at a time the Federal Government is intensifying efforts to reverse years of declining crude output.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the projects align with the Federal Government’s strategy to raise Nigeria’s crude oil production to more than two million barrels per day in the near term, describing renewed investments by major operators as evidence that policy reforms are restoring investor confidence in the country’s oil and gas sector.
