The Federal Government has announced its support for ExxonMobil’s plan to invest $10 billion in Nigeria’s deep-water oil operations.
This was revealed in a statement by Nigeria’s Vice President, Kashim Shettima, during a meeting with ExxonMobil executives at the ongoing 79th Session of the United Nations General Assembly in New York, United States.
ExxonMobil is among the international oil companies (IOCs) shifting from Nigeria’s onshore fields to focus on offshore operations in the oil-rich Niger Delta.
Shettima highlighted that the proposed investment reflects the success of the administration’s economic reforms and policies designed to attract foreign investment.
“This potential investment by ExxonMobil aligns perfectly with the President @officialABAT administration’s vision for a more investment-friendly Nigeria. We are committed to creating an enabling environment for such transformative projects,” Shettima stated.
Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, reiterated the company’s commitment to Nigeria and mentioned the Owo project as the focal point of ExxonMobil’s new strategy. The project, a large subsea tie-back, could amount to a $10 billion investment.
“Our commitment to Nigeria remains unwavering. As we celebrate 70 years of oil production and 8 billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities.
“We’re working closely with the President’s office and the Special Adviser to the President to secure favourable fiscal arrangements that will make this significant investment possible,” Harris said.
ExxonMobil also plans to inject $1 billion annually into maintenance operations and an additional $1.5 billion to boost production by 50,000 barrels per day in the coming years.
Additionally, ExxonMobil is working with Seplat Energy on the divestment of its onshore assets for $1.2 billion, a deal that has gained momentum following President Tinubu’s intervention.
ExxonMobil is not alone in moving offshore. In January, Shell Plc agreed to sell its Nigerian onshore assets to a local consortium for over $1.3 billion, pending government approval. Shell could receive up to $1.1 billion in additional payments. The buying consortium, Renaissance, includes ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin.
In a related development, TotalEnergies also announced plans to sell its minority stake in a significant Nigerian onshore oil joint venture following Shell’s divestment.
