The Nigerian government announced on Thursday that ExxonMobil has proposed a significant $10 billion investment in the country’s deep-water oil operations.
This announcement followed a high-level meeting between Nigeria’s Vice President Kashim Shettima and ExxonMobil executives during the ongoing 79th session of the United Nations General Assembly (UNGA) in New York, as reported by Stanley Nkwocha, senior special assistant to the president on media and communications.
“This potential investment by ExxonMobil aligns perfectly with the President Bola Tinubu administration’s vision for a more investment-friendly Nigeria. We are committed to creating an enabling environment for such transformative projects,” Shettima stated in the official release.
He further elaborated on the Tinubu administration’s efforts to ensure an improved business climate in Nigeria.
“The Renewed Hope Agenda prioritises ease of doing business. We have launched comprehensive reforms to streamline bureaucratic processes, enhance transparency, and offer fiscal incentives that make Nigeria an attractive destination for global investors,” he noted.
Highlighting recent policy changes, Shettima mentioned the government’s bold steps to unify the exchange rate, eliminate fuel subsidies, and implement tax reforms.
“These decisions, while challenging in the short term, are designed to create a more stable and predictable business environment in the long run,” he added.
Addressing concerns specific to the oil and gas sector, Shettima remarked, “We are actively working on revising the fiscal framework for deep-water operations. Our goal is to strike a balance between attracting investments and ensuring fair returns for the Nigerian people.”
He emphasized that the potential ExxonMobil investment signifies that Nigeria is moving in the right direction and welcomed the company’s renewed commitment.
“Our doors are open to all investors across various sectors. The message is clear: Nigeria is open for business, and the President Tinubu administration is your partner in progress,” he said.
Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, reaffirmed the company’s dedication to investing in the nation.
“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,” he stated.
The centerpiece of ExxonMobil’s new strategy, according to the statement, is the Owo project, a significant subsea tie-back that could represent the $10 billion investment.
“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.
Despite plans to divest its onshore assets to Seplat Energy, ExxonMobil is poised to inject $1 billion annually into maintenance operations and an additional $1.5 billion to increase production by 50,000 barrels per day over the next few years.
This follows Seplat’s announcement in February 2022 regarding its acquisition of ExxonMobil’s 40 percent interest in a shallow-water joint venture with the Nigerian National Petroleum Company Limited (NNPC Ltd) for $1.3 billion—a deal originally set for completion by mid-2022 but delayed due to various issues.