ExxonMobil returns to Africa’s biggest oil producer with US$1bn bet after nearly a decade
July 9, 2026
ExxonMobil has officially returned to active drilling operations in Nigeria for the first time in nearly a decade with a US$1bn investment in one of the country’s largest offshore oil projects, reinforcing confidence in Africa’s biggest oil producer after years of declining investment and production challenges.
The American energy giant, through its Nigerian affiliate Esso Exploration and Production Nigeria (Offshore East) Limited, has launched the Usan Infill Project located in Oil Mining Lease 138 offshore Nigeria. The development marks ExxonMobil’s first drilling campaign in the country since 2016 and represents one of the most significant upstream investments announced in Nigeria this year.
The project is expected to add approximately 40,000 barrels of crude oil per day to Nigeria’s production capacity once fully operational, providing a major boost to the country’s efforts to restore output levels and strengthen government revenues. According to industry estimates, first oil from the project is expected within the next 18 months.
The Usan Infill Project is being funded jointly by ExxonMobil and its partners in the offshore block, including Chevron, TotalEnergies and Nexen, the Chinese-owned subsidiary of CNOOC. The project operates under a production-sharing arrangement with NNPC Limited, Nigeria’s national oil company.
The investment centres on the Usan Floating Production, Storage and Offloading facility, commonly known as an FPSO, which has been producing oil offshore Nigeria for years. Recent seismic studies completed in 2024 identified new drilling opportunities around the field, paving the way for the infill drilling campaign now being executed by ExxonMobil and its partners.
https://africabusinessinsight.com/exxonmobil-nigeria-1bn-oil-investment/
History of oil drilling harm in Nigeria:
Oil drilling in Nigeria has caused significant environmental harm, including widespread pollution and destruction of local ecosystems since the 1950s. The Niger Delta region has suffered from regular oil spills, which contaminate farmland, lakes, and rivers, severely impacting agriculture and local livelihoods. London School of Economics and Political Science climate-diplomacy.org
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