EXXONMOBIL has announced plans to invest $10bn in offshore oil projects in Nigeria, marking a significant push in its commitment to the country’s energy sector. The announcement was made during discussions between Nigeria’s Vice President Kashim Shettima and Shane Harris, CEO of ExxonMobil’s Nigerian operations, on the sidelines of the United Nations General Assembly in New York.
The oil giant’s primary focus will be on developing its Owo deep-water project, which is expected to cost $10bn. ExxonMobil also plans to invest an additional $2.5bn annually to increase oil production by 50,000 barrels per day (bpd) over the coming years. Despite the recent agreement to sell its onshore assets to Seplat Energy for $1.3bn, the company remains committed to expanding its offshore operations in Nigeria.
Shane Harris noted that ExxonMobil is collaborating with Nigeria’s government to secure favourable fiscal terms that will enable this substantial investment. ‘We are working closely with the president’s office to create the necessary financial conditions for this project to move forward,’ Harris said.
Oil production, which remains critical to Nigeria’s economy, accounting for the bulk of the country’s government revenue and foreign exchange, saw a 10.15 percent increase in the second quarter of this year. Output rose to an average of 1.41 million bpd, up from 1.22 million bpd a year earlier.
However, Nigeria, Africa’s largest oil producer, continues to face challenges within the sector, including large-scale theft and sabotage. Despite passing legislation three years ago aimed at improving regulatory certainty and attracting investment, the industry still struggles with these issues.
Vice President Shettima praised ExxonMobil’s proposed investment, aligning it with President Bola Tinubu’s goal of fostering a more investment-friendly environment. ‘This investment aligns perfectly with the administration’s vision for a transformed and investor-friendly Nigeria. We are dedicated to ensuring such transformative projects succeed,’ Shettima said.
The move by ExxonMobil underscores the company’s long-term commitment to Nigeria, a key player in Africa’s energy landscape.
