NNPC, ExxonMobil Meet As Usan Infill Work Begins On OML 138

The Nigerian National Petroleum Company Limited (NNPC Limited) has engaged ExxonMobil on boosting deepwater output and pursuing further offshore investments, weeks after work began on the US$1 billion Usan Infill Project in Oil Mining Lease 138.

The group chief executive officer of NNPC Limited, Engr. Bashir Bayo Ojulari, received a delegation from ExxonMobil led by Jagir Baxi, chairman, managing director and lead country manager of the company’s affiliates in Nigeria, in Abuja recently.

The discussions focused on production from the blocks jointly held by the two companies, as well as additional deepwater investments ExxonMobil is pursuing in Nigeria, NNPC stated in a post on its X handle of Saturday.

ExxonMobil operates OML 138 under a production sharing contract with NNPC Limited. The block hosts the Usan Infill Project, which is expected to increase production by 40,000 barrels per day when completed.

Valued at approximately US$1 billion, the project marks ExxonMobil’s first drilling campaign in Nigeria since 2016 and signals renewed activity in the country’s deepwater oil sector.

The engagement also highlighted efforts by NNPC Limited and its international partners to raise crude production from existing assets and attract fresh investment into Nigeria’s offshore industry.

Through infill drilling, the Usan project is expected to improve recovery from the field and contribute to national oil output.

NNPC’s engagement with ExxonMobil comes as both companies navigate expanding deepwater activities in Nigerian waters. The Usan Infill Project, located within the existing Usan field, is designed to optimise recovery through additional wells and infill drilling, increasing plateau throughput and extending field life.

Project backers say the expected 40,000 bpd increment will provide a meaningful uplift to national oil output from the deepwater segment.

For ExxonMobil, the Usan drilling programme marks a return to active well campaigns in Nigeria’s deepwater after a multi-year hiatus, signalling renewed external investment appetite in the country’s offshore sector. For NNPC Limited, closer coordination with its foreign partner underscores its role as a strategic collaborator under production sharing arrangements and a stakeholder in offshore development decisions.