ExxonMobil has announced a $1.5 billion investment to rejuvenate its deepwater Usan oilfield in Nigeria’s Niger Delta. This initiative, set to span from Q2 2025 to 2027, aims to enhance production capacity through the revitalization of existing infrastructure, including 34 subsea wells and eight manifolds. The final investment decision is anticipated by late Q3 2025, pending regulatory approvals and funding arrangements. This move aligns with Nigeria’s “Project 1 Million Barrels” initiative, targeting an increase in daily oil production to 2.4 million barrels by 2026.
The Usan oilfield, located approximately 100 kilometers off the coast of Nigeria, has been a significant contributor to the country’s oil output since its inception. However, production has declined in recent years due to aging infrastructure and operational challenges. ExxonMobil’s investment aims to reverse this trend by implementing advanced technologies and upgrading existing facilities.
Nigerian authorities have welcomed the investment, viewing it as a testament to the country’s potential in the global energy sector. The project is expected to create numerous job opportunities and stimulate economic growth in the region. Additionally, it underscores the importance of public-private partnerships in driving national development.
Environmental groups have urged ExxonMobil to adhere to stringent environmental standards during the project’s execution. They emphasize the need for sustainable practices to minimize ecological impact and ensure the well-being of local communities. ExxonMobil has responded by committing to comprehensive environmental assessments and community engagement initiatives.
