ExxonMobil Corp has announced a $10 billion investment in offshore oil operations as part of a renewed commitment to Nigeria, Africa’s fourth-largest economy.
This announcement was made by Nigeria’s Vice President, Kashim Shettima, following a meeting with ExxonMobil executives at the ongoing 79th Session of the United Nations General Assembly in New York.
This development comes despite Exxon’s recent agreement to sell its onshore assets to Seplat Energy for $1.3 billion and a downsizing of its Nigerian operations, which includes relocating to a smaller office facility.
The cornerstone of ExxonMobil’s new strategy is the Owo project, a significant subsea tie-back with an estimated cost of $10 billion.
The company also plans to invest $1 billion annually in maintenance operations and an additional $1.5 billion to increase production by 50,000 barrels per day over the next few years.
Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, emphasized that the company is collaborating closely with Nigeria’s president to secure favorable fiscal arrangements that will enable this substantial investment.
“This potential investment by ExxonMobil aligns perfectly with President @officialABAT’s administration’s vision for a more investment-friendly Nigeria. We are committed to creating an enabling environment for such transformative projects,” Shettima stated.
Nigeria’s oil production, the primary source of government revenue and foreign exchange, rose by 10.15% in the second quarter, reaching an average of 1.41 million barrels per day (bpd), compared to 1.22 million bpd during the same period last year.
Despite being Africa’s largest oil producer, Nigeria faces significant challenges in its oil industry, including widespread theft and sabotage.
