ExxonMobil is vacating its expansive offices in Lagos as its 33-year lease expires on Friday, Reuters reported on Friday.
This move is part of the oil giant’s broader strategy to reduce its operations in Nigeria.
In a similar trend, oil companies such as Shell, TotalEnergies, and Eni have attempted to exit Nigeria’s oil-rich Niger Delta in recent years due to security concerns, though these efforts have been hindered by regulatory obstacles.
In January, Shell announced an agreement to sell its 30% stake in Shell Petroleum Development Company (SPDC) to a consortium of primarily local companies for up to $2.4 billion. ExxonMobil, Eni, and Equinor have also divested assets in Nigeria in recent years, redirecting their focus to more lucrative operations elsewhere.
ExxonMobil’s plan to sell its land and shallow-water assets to local oil firm Seplat Energy, agreed upon in 2022, is nearing completion. According to the local oil sector regulator, an agreement signed on Wednesday between the Nigerian National Petroleum Corporationand Exxon’s local unit is a “precursor to regulatory approval.”
Despite the government’s efforts to attract multinational oil firms, Exxon’s relocation to smaller offices and the absence of new investments indicate a scaling down of operations.
Exxon is moving staff from the 12-floor Mobil House in Lekki, which reportedly costs $10 million annually in lease fees, to a six-floor office building in the upscale Ikoyi area, 22 kilometers away. This new building is designed to accommodate half the personnel of the former offices.
Following the disposal to Seplat Energy, ExxonMobil has stated it will concentrate on its deepwater assets in Nigeria through its local units, Esso Exploration and Production Nigeria and Esso Exploration and Production Nigeria (Deepwater).
Oil companies are scaling back operations in Nigeria due to several challenges, including oil theft, which has undermined the profitability and sustainability of their ventures.
Recently, ExxonMobil also decided to exit Equatorial Guinea after nearly 30 years, reflecting its strategic shift to more profitable regions.
