The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has welcomed ExxonMobil’s $1 billion investment in Nigeria’s oil and gas industry, describing it as a significant vote of confidence in the country’s upstream petroleum sector.
The announcement was made during the 25th NOG Energy Week Conference and Exhibition, where the Commission also presented new Petroleum Prospecting Licences (PPLs) to successful investors under Nigeria’s recent licensing rounds.
ExxonMobil to Boost Oil Production
Speaking at the conference, the Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, disclosed that the energy giant and its partners have committed $1 billion to the Usan Infill Project located in Oil Mining Lease (OML) 138.
According to Baxi, the investment is expected to increase crude oil production by an additional 40,000 barrels per day, strengthening Nigeria’s output and supporting the country’s energy sector.
Reacting to the announcement, NUPRC Chief Executive, Engr. Gbenga Komolafe, described the investment as a major milestone, noting that the operator of the block, Esso Exploration and Production Nigeria, had not carried out drilling operations in the field since 2016.
The Usan field is operated by Esso Exploration under a Production Sharing Contract (PSC) with NNPC Limited, in partnership with Chevron, TotalEnergies, and Nexen.
New Petroleum Licences Awarded
In a separate development, the NUPRC officially presented Petroleum Prospecting Licences to companies that emerged successful in the 2022/2023 Mini Bid Round and the Nigeria 2024 Licensing Round.
The newly licensed companies include:
- Broron Energy Limited – PPL 2009
- Petroli Energy Marketing and Supply Limited – PPL 269
- Sahara Deepwater Resources Limited – PPLs 270 and 271
- Tulcan Energy E&P Co. – PPL 2008
According to the Commission, a total of 12 companies secured 19 Petroleum Prospecting Licences, covering deep offshore, shallow water, and continental shelf assets.
Boost for Nigeria’s Oil Industry
The NUPRC said the latest licensing exercise demonstrates growing investor confidence in Nigeria’s petroleum sector and reflects the country’s commitment to attracting fresh capital into oil and gas exploration.
Industry stakeholders believe the combination of ExxonMobil’s fresh investment and the issuance of new exploration licences could accelerate production growth, create employment opportunities, and strengthen Nigeria’s position as one of Africa’s leading oil-producing nations.
The Commission reaffirmed its commitment to creating a transparent, competitive, and investor-friendly regulatory environment that supports sustainable development of Nigeria’s hydrocarbon resources.
Keywords: ExxonMobil Nigeria, NUPRC, $1 billion investment, Nigeria oil and gas, OML 138, Usan Infill Project, Petroleum Prospecting Licence, NOG Energy Week, NNPC Limited, Nigeria upstream sector.
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