en.Wedoany.com Reported - The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has commended ExxonMobil and its partners for investing $1 billion to develop the Usan Infill Project in OML 138.
NUPRC Chief Executive Oritsemyiwa Eyesan made the remarks on Wednesday at the 25th Nigeria Oil and Gas (NOG) conference in Abuja. He noted that this investment commitment is expected to increase Nigeria's daily production capacity by 40,000 barrels, a significant development as ExxonMobil subsidiary Esso Exploration and Production Nigeria has not conducted any drilling operations since 2016. Eyesan stated that the resumption of drilling activities marks a revival of the potential and value of deepwater areas, and the NUPRC remains steadfast in advancing Nigeria's deepwater project portfolio. These developments are crucial for achieving national production targets, increasing reserves, sustaining government revenues, and boosting investor confidence.
The investment commitment was announced at the conference. Jagir Baxir, Managing Director of ExxonMobil's Nigerian subsidiary, praised the role of the NUPRC and other government agencies in advancing the project. Esso Exploration and Production is the operator of OML 138, which includes the Usan oil field, operating under a production sharing contract with the Nigerian National Petroleum Company Limited (NNPC Limited). Joint venture partners in OML 138 include Chevron, TotalEnergies, and Nexen, a wholly owned subsidiary of China National Offshore Oil Corporation (CNOOC).
As a short-cycle investment project, it is expected to sustain and increase production from the Usan oil field, with first production achievable within 18 months of identifying investment opportunities from seismic data.
The NUPRC also presented Petroleum Prospecting Licenses (PPLs) at the NOG conference, resulting from the successful conclusion of the 2022/2023 mini-bid round and the Nigeria 2024 bid round. Some of the companies awarded licenses include: Broron Energy Limited (PPL 2009), Petroli Energy Marketing and Supply Limited (PPL 269), Sahara Deepwater Resources Limited (PPL 270 and PPL 271), and Tulcan Energy E&P Co (PPL 2008). The commission stated that the execution ceremony for companies not present will be scheduled at a mutually convenient time. This award involves 12 successful bidders, covering 19 Petroleum Prospecting Licenses, including a balanced mix of deepwater, shallow water, and shelf blocks, reflecting the diverse opportunities offered by the bid rounds. The NUPRC stated that these awards represent another significant milestone in Nigeria's ongoing efforts to deepen investment in the upstream oil sector, accelerate exploration activities, expand the country's hydrocarbon reserves, and create long-term value for the economy.
