ExxonMobil to invest $10bn in Nigeria’s deep-water oil

ExxonMobil to invest $10bn in Nigeria’s deep-water oil 

 

ExxonMobil has announced plans to invest a total of$10 billion in Nigeria’s deep-water oil operations.

Chairman and Managing Director of ExxonMobil in Nigeria, Shane Harris, stated this on Wednesday during a high-level meeting with Vice-President Kashim Shettima.

He spoke on the sidelines of the ongoing 79th session of the United Nations General Assembly (UNGA) in New York.

In a statement by Stanley Nkwocha, senior special assistant to the president on media and communications, Harris reaffirmed the company’s commitment to investing in Nigeria.

“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 said.

Harris said the company was working closely with President Bola Tinubu’s office to secure favourable fiscal arrangements to make the investment possible.

“The centerpiece of ExxonMobil’s new strategy is the Owo project, a substantial subsea tie-back that could represent a $10 billion investment,” he said.

“Despite the planned divestment of its onshore assets to Seplat Energy, ExxonMobil aims to inject $1 billion annually into maintenance operations and an additional $1.5 billion to boost production by 50,000 barrels per day over the next few years.”

Shettima described the investment as a testament to the administration’s economic reforms and investment-friendly policies.

“This potential investment by ExxonMobil aligns perfectly with the President Bola Ahmed Tinubu administration’s vision for a more investment-friendly Nigeria,” Shettima said.

“We are committed to creating an enabling environment for such transformative projects.

Shettima highlighted several recent policy changes introduced by the administration, including unifying the exchange rate, removing petrol subsidy and implementing tax reforms.

The decisions, he said, were designed to create a stable and predictable business environment despite their short-term challenges.

The vice president said the government was actively working on revising the fiscal framework for deep-water operations, ensuring both investment appeal and fair returns for Nigerians.

“The potential ExxonMobil investment is a clear indication that we are moving in the right direction,” he said.

He added, “As we welcome ExxonMobil’s renewed commitment, we see this as just the beginning. Our doors are open to all investors across various sectors.”