The Federal Government has expressed its support for ExxonMobil’s announcement of a $10 billion investment in Nigeria’s deep-water offshore oil operations
This was disclosed 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.
Shettima noted that the proposed investment serves as a clear testament to the administration’s economic reforms and investment-friendly policies.
He emphasized that such commitments from major players like ExxonMobil reflect the positive business environment being cultivated in Nigeria and the government’s dedication to attracting foreign investment.
ExxonMobil is among a select group of international oil companies that have transitioned from Nigeria’s onshore operations to focus on deep-water exploration in the oil-rich Niger Delta.
“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 declared.
In his remark, the Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, Shane Harris reaffirmed the company’s commitment to investing in the country.
He emphasized ExxonMobil’s dedication to supporting Nigeria’s energy sector and contributing to its economic development through strategic investments in deep-water operations.
“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 explained.
In addition, ExxonMobil plans to inject $1 billion annually into maintenance operations and invest an additional $1.5 billion to increase production by 50,000 barrels per day over the next few years.
There is an ongoing plan for ExxonMobil to divest its onshore assets to Seplat Energy for $1.2 billion. This deal, which has been in the works since 2022, gained momentum following President Tinubu’s intervention to expedite the resolution of the matter.
Moreover, ExxonMobil is not the only international oil company (IOC) opting to shift its focus offshore; several IOCs are implementing divestment strategies to offload their stakes in the onshore segment of the oil and gas sector.
In January, Shell Plc reached an agreement to sell its Nigerian onshore oil assets to a local consortium for over $1.3 billion, pending government approval
