Exxon Mobil is scaling down its operations in Nigeria as it moves to reduce its office space in Lagos while curtailing activities in Nigeria.
Exxon has moved out of its enormous Lagos offices and opted for a more compact location. Similar reductions are expected in other Nigerian cities where the company is active, according to Reuters.
It is reported that Exxon is transferring employees from the 12-floor Mobil House, which is leased for $10 million a year, to a six-floor office building located 22 kilometres away in the affluent Ikoyi district— designed to house only half of the staff from the previous location.
“The new office leaves no one in doubt about its plans for Nigeria,” a staff member of the company told Reuters.
It is still unclear how many employees will be affected by the office closures, but it is expected that they will lead to job cuts and a reduction of Exxon’s presence in the country.
Experts in the industry believe that Exxon’s move reflects an overall pattern of international oil companies, operating in Nigeria.
The pressure to reduce costs and optimize operations has resulted in a shift toward smaller, more efficient teams for many of the IOCs
Shell, the world’s largest oil company, signed an agreement in January with a local consortium amounting to more than $1.3 billion pending government approval for the sale of its Nigerian offshore oil assets.
In addition to the initial sum, Shell anticipates receiving extra payments of up to $1.1 billion. The purchasing consortium, named Renaissance, comprises ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin.
Similarly, TotalEnergies disclosed plans to offload its minority stake in a significant Nigerian onshore oil joint venture following Shell’s divestment announcement.
The oil companies are scaling back their operations in Nigeria due to several factors, including oil thefts in the Niger Delta, which have undermined their profitability and sustainability.
