ExxonMobil and its partners plan to invest $1 billion in the Usan Infill Project offshore Nigeria, a move expected to add about 40,000 barrels a day of crude production, Nigeria’s upstream regulator said Wednesday.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said the investment signals ExxonMobil’s return to drilling in Nigeria through its affiliate, Esso Exploration and Production Nigeria. The company last drilled in the country in 2016.

ExxonMobil Nigeria Managing Director Jagir Baxi confirmed the investment at an oil conference in Abuja.

Esso Exploration and Production Nigeria operates Oil Mining Lease (OML) 138, which contains the Usan field under a production-sharing contract with NNPC Ltd.

NUPRC Chief Executive Gbenga Komolafe said the Usan Infill Project is expected to begin producing oil within 18 months after seismic studies identified additional development opportunities at the field.

Nigeria seeks fresh upstream capital

The investment comes as Nigeria steps up efforts to attract fresh capital into its oil and gas sector and increase crude production through new offshore and onshore developments.

In a separate announcement, the regulator awarded 19 petroleum prospecting licenses covering deepwater, shallow-water and continental shelf acreage to successful bidders from the 2022/2023 Mini Bid Round and the 2024 Licensing Round, part of the government’s broader push to revive upstream investment.

Africa remains a strategic market

ExxonMobil has operated in Nigeria for decades and remains one of the country’s largest deepwater investors through its affiliate, Esso Exploration and Production Nigeria. While the company has sold some shallow-water assets in recent years, it continues to focus on deepwater exploration and production across West Africa.

The U.S. energy company operates in more than 56 countries and ranks among the world’s largest publicly traded integrated energy producers, with businesses spanning crude oil, natural gas, fuels, lubricants and chemicals.

Beyond Nigeria, ExxonMobil is also expanding its footprint in Africa. The company recently signed a preliminary agreement to supply liquefied natural gas to South Africa’s proposed Zululand Energy Terminal, which is expected to become the country’s first LNG import facility, underscoring its continued interest in the continent’s growing energy market.