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ExxonMobil Expands Nigeria Presence With $1B Usan Infill Project
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Key Takeaways
ExxonMobil and partners are investing $1B in the offshore Usan Infill Project in Nigeria.
The project is expected to boost oil and gas output by 40,000 barrels per day.
Production is anticipated within 18 months after seismic data guided the investment decision.
Exxon Mobil Corporation (XOM - Free Report) and its partners have set forth a $1 billion investment in the Usan Infill Project, an offshore oil and gas development in Nigeria. The Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”) highlighted that this investment marks ExxonMobil's return to exploration and production activities in the country through its Nigerian subsidiary, Esso Exploration and Production Nigeria. The regulatory body added that the last drilling activity conducted by XOM in Nigeria was in 2016.
The billion-dollar investment is significant for the country’s energy sector, and the development is expected to increase oil and gas production by 40,000 barrels per day. Esso Exploration and Production Nigeria operates the Usan field, which lies in the Oil Mining Lease 138 under a production sharing contract with the Nigerian National Petroleum Company. The other partners in the project include Chevron Corporation, TotalEnergies and Nexen (a subsidiary of CNOOC).
The Usan field was discovered in 2002, and it started oil production in 2012. The development of the Usan field involved a floating production, storage and offloading unit and 42 subsea wells at depths of 2,400 meters off the coast of Nigeria. The NUPRC added that the Usan Infill Project is anticipated to begin production within 18 months. ExxonMobil and partners collected and analyzed seismic data to obtain information regarding recoverable oil volumes in the field before making the investment decision.
Nigeria is actively seeking to increase its crude oil production in the near-term and attract more investment to the upstream oil sector. The country intends to increase its production levels through the development of its offshore and onshore resources, improving its energy security. Additionally, the NUPRC announced that it awarded 19 petroleum prospecting licenses to several companies that participated in the 2022/2023 Mini Bid Round and the 2024 Licensing Round. This reinforces its strategy to raise oil and gas production in the country by encouraging new exploration activity and investments into its upstream sector.
Cenovus Energy Inc. is a Canadian integrated energy company with operations spanning the upstream, midstream and downstream sectors. The company is involved in exploration and production from its low-cost oil sands and heavy oil assets in Canada. The strategic MEG Energy acquisition is expected to boost Cenovus Energy's production levels in 2026.
Par Pacific Holdings operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington, and Idaho, refining operations in Hawaii, Wyoming, Washington, and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt, and other petroleum products.
FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
View the Zacks #1 Rank List
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ExxonMobil Expands Nigeria Presence With $1B Usan Infill Project
Key Takeaways
Exxon Mobil Corporation (XOM - Free Report) and its partners have set forth a $1 billion investment in the Usan Infill Project, an offshore oil and gas development in Nigeria. The Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”) highlighted that this investment marks ExxonMobil's return to exploration and production activities in the country through its Nigerian subsidiary, Esso Exploration and Production Nigeria. The regulatory body added that the last drilling activity conducted by XOM in Nigeria was in 2016.
The billion-dollar investment is significant for the country’s energy sector, and the development is expected to increase oil and gas production by 40,000 barrels per day. Esso Exploration and Production Nigeria operates the Usan field, which lies in the Oil Mining Lease 138 under a production sharing contract with the Nigerian National Petroleum Company. The other partners in the project include Chevron Corporation, TotalEnergies and Nexen (a subsidiary of CNOOC).
The Usan field was discovered in 2002, and it started oil production in 2012. The development of the Usan field involved a floating production, storage and offloading unit and 42 subsea wells at depths of 2,400 meters off the coast of Nigeria. The NUPRC added that the Usan Infill Project is anticipated to begin production within 18 months. ExxonMobil and partners collected and analyzed seismic data to obtain information regarding recoverable oil volumes in the field before making the investment decision.
Nigeria is actively seeking to increase its crude oil production in the near-term and attract more investment to the upstream oil sector. The country intends to increase its production levels through the development of its offshore and onshore resources, improving its energy security. Additionally, the NUPRC announced that it awarded 19 petroleum prospecting licenses to several companies that participated in the 2022/2023 Mini Bid Round and the 2024 Licensing Round. This reinforces its strategy to raise oil and gas production in the country by encouraging new exploration activity and investments into its upstream sector.
XOM’s Zacks Rank and Key Picks
XOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Cenovus Energy (CVE - Free Report) , Par Pacific Holdings (PARR - Free Report) and FuelCell Energy (FCEL - Free Report) . While Cenovus Energy and Par Pacific currently sport a Zacks Rank #1 (Strong Buy) each, FuelCell Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Cenovus Energy Inc. is a Canadian integrated energy company with operations spanning the upstream, midstream and downstream sectors. The company is involved in exploration and production from its low-cost oil sands and heavy oil assets in Canada. The strategic MEG Energy acquisition is expected to boost Cenovus Energy's production levels in 2026.
Par Pacific Holdings operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington, and Idaho, refining operations in Hawaii, Wyoming, Washington, and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt, and other petroleum products.
FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.