ABUJA, Nigeria — The Nigerian Upstream Petroleum Regulatory Commission has welcomed ExxonMobil’s $1 billion investment in the Usan deepwater project, a move expected to boost crude oil production by 40,000 barrels per day and revive drilling activities in Nigeria’s deep offshore territory.
The commission announced the development on Tuesday, stating that the investment underscores the continued confidence of international oil companies in Nigeria’s petroleum sector despite global energy transitions and local operational challenges.
The Usan field, located in Oil Mining Lease 138, approximately 100 kilometres offshore in water depths of around 800 metres, has been a significant contributor to Nigeria’s oil output since production began in 2012. The new investment is expected to extend the life of the field and increase its production capacity through enhanced recovery techniques and new drilling activities.
The $1 billion investment will support the drilling of additional production wells and the installation of subsea infrastructure to optimise production from the field, according to the commission. The project is also expected to create employment opportunities for Nigerians and provide a boost to the local economy through the utilisation of local content and services.
In addition to welcoming the ExxonMobil investment, the Nigerian Upstream Petroleum Regulatory Commission announced the award of 19 new oil licences to successful bidders in the 2026 marginal field bid round. The licences, which cover various onshore and offshore blocks, are expected to attract further investment into the sector and increase Nigeria’s oil reserves and production capacity.
The commission stated that the bid round was conducted transparently and in accordance with the provisions of the Petroleum Industry Act, which provides a legal framework for the development of the country’s oil and gas resources. The successful bidders included a mix of local and international companies, reflecting the broad interest in Nigeria’s upstream sector.
The Nigerian Upstream Petroleum Regulatory Commission chief executive, speaking at the announcement, said the combination of the ExxonMobil investment and the new licence awards signals a positive trajectory for Nigeria’s oil and gas industry. He noted that the sector remains a critical component of the Nigerian economy and that the government is committed to creating an enabling environment for investment.
The investment and licence awards come amid ongoing efforts by the federal government to increase oil production to meet its OPEC quota and boost revenue. Nigeria, which is Africa’s largest oil producer, has faced challenges in recent years due to pipeline vandalism, theft, and underinvestment in the sector.
The Nigerian Upstream Petroleum Regulatory Commission has assured that the necessary regulatory oversight will be maintained to ensure that the projects are executed in an environmentally sustainable manner and in compliance with all relevant laws and regulations. The commission also expressed confidence that the new investments will contribute to Nigeria’s economic growth and development.
ExxonMobil, which operates the Usan field in partnership with the Nigerian National Petroleum Company Limited, has expressed its commitment to working with the commission and other stakeholders to ensure the successful execution of the project. The company noted that the investment reflects its confidence in Nigeria’s long-term potential and its commitment to supporting the country’s energy sector development.
