…As FG launches renewable energy firm
Nigeria’s oil production is set for a boost as Esso Exploration and Production Nigeria (Offshore East) Limited, an ExxonMobil subsidiary, begins a new drilling campaign expected to add up to 40,000 barrels per day (bpd) to output within 18 months.
The company, operator of the Usan field in Oil Mining Lease (OML) 138, announced the arrival of the Noble Gerry de Souza ultra-deepwater drillship in Nigerian waters.
The development marks the start of the Usan Infill Project, which is aimed at increasing production from the existing field through additional drilling and subsea development.
The project is expected to help the Federal Government move closer to its target of raising Nigeria’s crude oil production to three million barrels per day by 2030.
Esso said the project is backed by about $1 billion in cumulative investment from the partners in OML 138, reflecting continued investment in Nigeria’s deepwater oil sector.
Chairman and Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, said the arrival of the drillship marked a new phase for the Usan field.
“The arrival of the Noble Gerry de Souza marks the beginning of an exciting new chapter for the Usan Field and reflects our continued focus on delivering short cycle deepwater production growth through disciplined investment, in deploying technologies and through operational excellence,” he said.
According to the company, the advanced drillship will support the safe and efficient execution of the drilling programme while helping to maximise recovery from existing infrastructure.
Esso said the project was the result of years of planning and collaboration among its teams, partners and other stakeholders.
It added that offshore operations would be carried out in collaboration with government agencies, regulators, contractors and other partners, with safety and responsible operations remaining a priority.
The Usan Infill Project is designed to increase output from the existing Usan field while making use of infrastructure already in place, allowing the company to bring the additional production on stream faster.
Meanwhile, the Rural Electrification Agency (REA) is set to launch the Renewable Asset Management Company (RAMCO) as Nigeria’s strategic answer to long-term energy financing.
The Managing Director of the Rural Electrification Agency (REA), Dr Abba Abubakar Aliyu, disclosed that the launch of RAMCO which heralds a new era of advancing distributed renewable energy access in Nigeria is billed to hold in Abuja next Wednesday.
The REA MD disclosed that RAMCO is intended to provide a specialised platform for the professional management, optimisation, and long-term sustainability of renewable energy assets.
He noted that Nigeria’s renewable energy opportunity is significant given its large population, solar resources, growing renewable energy developer ecosystem, and legal framework under the Electricity Act 2023.
He argued that the country now needs institutions capable of connecting renewable energy infrastructure with long-term private capital.
According to him, if properly structured and commercially disciplined, RAMCO could become a bridge between public infrastructure and private investment, while helping Nigeria move from a model focused primarily on infrastructure deployment to one centered on asset sustainability, productivity, and capital recycling.
He said the initiative is captured as a Build. Operate. Optimise. Aggregate. Refinance. Reinvest,” describing it as a potential model for creating a revolving financing system for renewable energy infrastructure.
Aliyu said the approach could allow capital initially deployed into mature renewable energy assets to be refinanced or recycled subject to appropriate commercial and regulatory structures with the proceeds potentially supporting new projects.
He argued that such a model could reduce Nigeria’s dependence on government budgets, sovereign borrowing, and development finance to expand electricity access.
The REA boss also identified asset maintenance as a major consideration for the renewable energy sector, noting that solar panels, batteries, inverters, and other components have different operating lifespan and require continuous maintenance and replacement.
He said effective asset management would therefore need to cover areas such as equipment maintenance, revenue collection, customer demand, operator performance, and the overall financial health of renewable energy projects.
He said attracting such long-term capital is important because the country’s electricity infrastructure needs are too large to be financed by the government alone.
Aliyu argued that Nigeria’s renewable energy strategy must therefore focus not only on installed capacity, but also on the ability to manage electricity infrastructure efficiently and mobilize capital for continued expansion.
He noted that the success of RAMCO should ultimately be measured by factors including the number of renewable assets kept productive, private capital attracted, distressed projects restored, and capital recycled into new electrification projects.
The post ExxonMobil’s Esso to add 40,000bpd to Nigeria’s oil output appeared first on The Sun Nigeria.
<small>Source: The Sun Nigeria — read the original story there.</small>