In a show of renewed confidence in Nigeria’s offshore oil sector, ExxonMobil today announced a $1.5 billion capital programme to revitalise its Usan deepwater field, located some 70 kilometres off the coast of the eastern Niger Delta. The investment, to be deployed between Q2 2025 and 2027, was revealed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Managing Director Shane Harris led ExxonMobil’s delegation at a meeting with NUPRC chief Gbenga Komolafe on Tuesday, confirming that the bulk of funds will go towards drilling new wells, upgrading subsea infrastructure and boosting production at Usan. First discovered in 2002 and brought online in 2012, Usan currently operates 34 subsea wells tied to eight manifolds but has seen output plateau in recent years.
“We expect to reach a final investment decision by late Q3 2025, once our Field Development Plan is approved and partner funding secured,” Harris told reporters. He added that the $1.5 billion complements parallel plans for Nigeria’s Owowo and Erha deepwater blocks, signalling a broader push into the country’s high-potential offshore basins.
Komolafe welcomed ExxonMobil’s commitment as a cornerstone of the NUPRC’s “Project 1 Million Barrels” initiative, which aims to lift national crude output to 2.4 million barrels per day by 2026. “This investment sends a strong message that global energy leaders see Nigeria’s offshore play as world-class,” he said. “It will spur further jobs, services and ancillary investments in the Niger Delta region.”
Industry analysts note that the deepwater sector has faced delays in recent years—from regulatory hold-ups to cost pressures—but that renewed upstream spending by ExxonMobil and its peers can rekindle exploration activity and shore up export revenues.
ExxonMobil’s Usan field, operated under OML 138, was granted development approval in 2008. The new funding will support workovers on aging wells and installation of enhanced subsea pumps to restore production to peak levels. Technicians will also upgrade flowlines and control systems to meet tougher safety and environmental standards.
With this announcement, Nigeria retains a high-profile partner in ExxonMobil, whose wider 2025-27 spending plan also targets gas-flaring reduction and local contractor development. As the federal government presses ahead with energy reforms, the deepwater boost promises both immediate output gains and longer-term technology transfers—key to sustaining growth in one of Africa’s largest oil producers.