NUPRC backs ExxonMobil’s $1bn Nigerian expansion

…awards PPLs to winners of 2024 licensing round

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has commended ExxonMobil and its partners for committing $1 billion to the on-block activities for the Usan Infill Project in OML 138.

Oritsemyiwa Eyesan, commission chief executive, NUPRC, gave the commendation at the 25th NOG Conference in Abuja on Wednesday.

Eyesan, commenting on the investment commitment which is expected to add 40,000 barrels per day to Nigeria’s production capacity, said that it is significant because Esso Exploration and Production Nigeria, ExxonMobil’s affiliate, had not undertaken 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 deep water acreage,” the NUPRC boss said.

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.

They had announced the investment commitment at the venue, which is expected to add 40,000 barrels per day.

In his remarks, Jagir Baxir, managing director of ExxonMobil affiliates in Nigeria, commended the NUPRC and other government agencies for their role in facilitating the project.

Esso Exploration and Production is the operator of OML 138, which contains the Usan field. The block is operated under a production-sharing contract with NNPC Limited. Co-venture partners in OML 138 include Chevron, TotalEnergies, and Nexen, a wholly owned subsidiary of CNOOC.

As a short-cycle investment, the project is expected to sustain and increase production from the Usan field, with first production within 18 months after the seismic data identified the investment opportunity.

The Commission at the NOG also presented Petroleum Prospecting Licences (PPLs) arising from the successful conclusion of the 2022/2023 Mini Bid Round and the Nigeria 2024 Licensing Round.

Some of the companies that were presented with their awards at the venue include Broron Energy Limited (PPL 2009), Petroli Energy Marketing and Supply Limited (PPL 269), Sahara Deepwater Resources Limited (PPL 270 and PPL 271) and Tulcan Energy E&P Co (PPL 2008).

The commission stated that companies whose representatives were not present will have their execution ceremonies scheduled shortly at mutually convenient dates.

In total, the exercise covers 12 successful awardees across 19 petroleum prospecting licences, comprising a balanced portfolio of deep offshore, shallow water and continental shelf acreages, reflecting the diversity of opportunities offered through the licensing rounds.

According to the NUPRC, the awards represent another significant milestone in Nigeria’s continuing efforts to deepen investment in the upstream petroleum sector, accelerate exploration activities, expand the nation’s hydrocarbon reserves, and create long-term value for the Nigerian economy.