NUPRC Acknowledges ExxonMobil’s $1 Billion Investment in Nigeria’s Oil Sector
The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has expressed its appreciation for ExxonMobil and its partners’ commitment to inject $1 billion into the Usan Infill Project located in Oil Mining Lease (OML) 138. This significant investment was announced during the 25th Nigeria Oil and Gas (NOG) Conference held in Abuja.
Investment Expected to Boost Production Capacity
Oritsemeyiwa Isan, CEO of the NUPRC, highlighted that this investment could add an impressive 40,000 barrels per day to Nigeria’s oil production capacity. Notably, Isan pointed out that the last drilling operations by Esso Exploration and Production Nigeria, an ExxonMobil affiliate, took place back in 2016. His remarks signify that this renewal of drilling activities could enhance the potential of the deepwater sector.
NUPRC’s Commitment to Deepwater Projects
Isan reaffirmed the NUPRC’s dedication to advancing Nigeria’s deepwater project portfolio, emphasizing that such initiatives are crucial for meeting national production targets, increasing reserves, sustaining government revenues, and bolstering investor confidence. The announcement of investment commitments at the conference underscores the ongoing commitment to enhancing Nigeria’s oil sector.
ExxonMobil’s Role and Future Plans
During the conference, Jagir Baksheer, Managing Director of ExxonMobil’s Nigerian affiliates, praised the contributions of the NUPRC and other governmental bodies in facilitating the Usan Infill Project. As the operator of OML 138, which incorporates the Usan field, ExxonMobil along with its co-venture partners, including Chevron, TotalEnergies, and Nexen, is positioned to play a pivotal role in turning this investment into tangible output.
Operational Timeline for Increased Production
The Usan Infill Project is expected to sustain and enhance production from the Usan field, with initial production anticipated within 18 months after the identification of investment opportunities through seismic data analysis. This timely progress could significantly contribute to Nigeria’s overall production capabilities.
Presentation of Petroleum Exploration Licenses
In addition to the investment announcement, the NUPRC also awarded Petroleum Exploration Licenses (PPL) as part of the conclusion of the 2022/2023 Mini Bid Round and the upcoming 2024 Licensing Round. Companies receiving PPLs included Broron Energy Limited, Petroli Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited, and Tulcan Energy E&P Co.
Milestone in Nigeria’s Upstream Sector
The NUPRC indicated that this exercise targeted 12 successful applicants for a total of 19 petroleum exploration licenses across a diverse range of opportunities in deepwater, shallow water, and continental shelf regions. This award represents a significant milestone in Nigeria’s efforts to attract investment in the upstream petroleum sector, accelerate exploration activities, and ultimately enhance the country’s hydrocarbon reserves while creating long-term economic value.
