Lagos – US energy giant ExxonMobil is set to invest around $1 billion in the development of Nigeria’s Usan offshore oil field, a move expected to boost national crude production and send a renewed signal of confidence to international investors.
The project, which involves new drilling activities at the Usan field, is expected to add up to 40,000 barrels per day (bpd) to Nigeria’s oil output, according to industry authorities. It also marks ExxonMobil’s return to drilling operations in Nigeria after nearly a decade, with the company’s last major drilling campaign dating back to 2016.
The investment comes as Nigeria seeks to revive its oil industry, which has faced years of declining investment, operational challenges, and production setbacks. President Bola Tinubu’s administration has introduced a series of reforms aimed at improving the business environment and attracting more private capital into the country’s strategic energy sector.
The Usan field, located in the deepwater OML 138 block, is one of Nigeria’s major offshore oil assets. Operated by Esso Exploration and Production Nigeria, ExxonMobil’s Nigerian subsidiary, alongside international partners, the field already benefits from significant production infrastructure.
The new development program will focus on drilling additional wells to increase recovery from existing reserves and optimize production. With potential additional output of 40,000 barrels per day, the project could help strengthen Nigeria’s oil revenues and support the country’s economic growth objectives.
The investment reflects renewed confidence in Nigeria’s energy potential and in the reforms introduced to create a more attractive environment for investors, industry officials said.
Africa’s largest economy and historically the continent’s biggest oil producer, Nigeria has been working to reverse years of declining investment after several international oil companies reduced their exposure to the sector.
Major energy companies have increasingly shifted their focus toward offshore projects, which are considered more attractive due to lower operational risks compared with onshore production areas affected by oil theft, security challenges, and infrastructure constraints.
Nigeria’s government is relying on the Petroleum Industry Act (PIA), passed in 2021, to modernize the sector’s governance, improve regulatory clarity, and provide greater certainty for investors.
Abuja’s objective is to increase oil production sustainably, strengthen government revenues, boost exports, and use energy resources as a driver of broader economic development.
Beyond increasing crude output, ExxonMobil’s investment could generate wider economic benefits across Nigeria’s energy ecosystem.
The project is expected to support local oil service companies, create employment opportunities, and strengthen technical capabilities in a sector that remains a key pillar of the Nigerian economy.
Nigeria is also seeking to use its energy resources to accelerate industrial development by expanding local processing capacity and improving energy infrastructure.
For market observers, ExxonMobil’s return represents an important indicator of renewed confidence in Nigeria’s investment climate.
At a time when African countries are competing to attract energy investments, the commitment of a major global player such as ExxonMobil could encourage other international companies to explore new opportunities across the continent.
Despite the global shift toward cleaner energy sources, oil and gas resources remain strategically important for many African economies seeking to finance infrastructure development and industrialization.
With this $1 billion investment, Nigeria aims to demonstrate that it remains a key destination for energy investments in Africa and that its offshore sector still offers significant growth opportunities.
