The Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi.
The Nigerian Upstream Petroleum Regulatory Commission has welcomed ExxonMobil’s decision to invest $1bn in the Usan Infill Project located in Oil Mining Lease 138, describing the development as a major milestone capable of reviving deepwater drilling activities and accelerating Nigeria’s crude oil production ambitions.
The investment, announced during the 25th Nigeria Oil and Gas Energy Week Conference and Exhibition in Abuja on Wednesday, is expected to increase production from the Usan field by about 40,000 barrels of crude oil per day.
Reacting shortly after the announcement by the Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, the Commission Chief Executive of the NUPRC, Oritsemyiwa Eyesan, said the investment marked the return of ExxonMobil’s drilling activities in Nigeria after nearly a decade.
According to a statement issued on Wednesday by the Head of Media and Corporate Communications at the commission, Eniola Akinkuotu, Eyesan described the renewed commitment by the oil major as a strong vote of confidence in Nigeria’s upstream petroleum sector and the ongoing reforms introduced under the Petroleum Industry Act.
She said the announcement was particularly significant because Esso Exploration and Production Nigeria –ExxonMobil’s affiliate – had not undertaken any drilling operation since 2016.
The statement read, “The Nigerian Upstream Petroleum Regulatory Commission has commended ExxonMobil and its partners for committing $1bn to the on-block activities for the Usan Infill Project in OML 138.
“The Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, announced the investment commitment at the venue, which is expected to add 40,000 barrels per day.
“With Esso’s last drilling operation dating back to 2016, the resumption of drilling signals renewed potential and value in our deep water acreage.”
Eyesan said the NUPRC remains steadfast in advancing Nigeria’s portfolio of deep water projects, adding that such developments are essential to achieving national production targets, increasing reserves, sustaining government revenues, and bolstering investor confidence.
The NUPRC boss stressed that the commission would continue to support investments capable of unlocking Nigeria’s offshore hydrocarbon resources and raising crude oil production.
She noted that increased investments in offshore projects would not only enhance crude oil production but would also generate employment opportunities, stimulate local content development and improve government earnings at a time when Nigeria is seeking to maximise the benefits of its hydrocarbon resources.
