NUPRC targets higher oil reserves as ExxonMobil commits $1bn to Usan project

By Onu Okorie

Nigeria’s drive to expand deepwater oil production received a major boost on Wednesday as the Nigerian Upstream Petroleum Regulatory Commission NUPRC reaffirmed its commitment to advancing the country’s deepwater portfolio, describing such investments as critical to meeting national production targets and increasing crude oil reserves.

The Commission Chief Executive of NUPRC, Oritsemyiwa Eyesan, made the declaration at the 25th NOG Energy Week Conference and Exhibition in Abuja while commending ExxonMobil and its partners for committing $1 billion to the Usan Infill Project in Oil Mining Lease OML, 138.

Eyesan said the Commission remained steadfast in driving investments in deepwater assets, noting that projects such as the Usan Infill development are essential for boosting Nigeria’s oil production, expanding reserves, sustaining government revenue and strengthening investor confidence in the country’s upstream petroleum industry.

The investment commitment was announced by the Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, who disclosed that the project is expected to add about 40,000 barrels of oil per day to Nigeria’s production capacity.

According to Eyesan, the announcement is particularly significant because Esso Exploration and Production Nigeria, ExxonMobil’s affiliate, has not carried out any drilling operation since 2016.

“With Esso’s last drilling operation dating back to 2016, the resumption of drilling signals renewed potential and value in our deepwater acreage,” she said.

She stressed that renewed investments in deepwater operations would play a key role in unlocking additional hydrocarbon resources and positioning Nigeria to achieve its long-term production aspirations.

Earlier, Baxi praised the NUPRC and other government agencies for creating an enabling environment that facilitated the project, describing the collaboration as instrumental to the investment decision.

Esso Exploration and Production Nigeria operates OML 138, which contains the Usan Field, under a Production Sharing Contract with NNPC Limited. Other partners in the block include Chevron, TotalEnergies and Nexen.

The Usan Infill Project is classified as a short-cycle investment and is expected to sustain and increase production from the field, with first oil anticipated within 18 months after seismic data identified the investment opportunity.

Meanwhile, the NUPRC also presented Petroleum Prospecting Licences (PPLs) to successful bidders from the 2022/2023 Mini Bid Round and the Nigeria 2024 Licensing Round.

Among the companies that received licences were Broron Energy Limited (PPL 2009), Petroli Energy Marketing and Supply Limited (PPL 269), Sahara Deepwater Resources Limited (PPLs 270 and 271) and Tulcan Energy E&P Co (PPL 2008).

The Commission said the awards covered 12 successful companies across 19 Petroleum Prospecting Licences spanning deep offshore, shallow water and continental shelf acreages, underscoring Nigeria’s commitment to attracting investment, accelerating exploration activities, expanding hydrocarbon reserves and creating long-term value for the nation’s economy.