ExxonMobil to invest $10bn in Nigeria’s oil sector

Vice President Kashim Shettima has welcomed ExxonMobil’s proposed $10bn investment in Nigeria’s deep-water oil operations, describing it as a testament to the administration’s economic reforms and investment-friendly policies.

This came as the international maritime giant, DP World, announced plans to develop a multibillion-dollar port project in Nigeria.

The Vice President stated this on Wednesday during a high-level meeting with ExxonMobil executives on the sidelines of the ongoing 79th Session of the United Nations General Assembly in York, United States.

Senior Special Assistant to the Vice President on Media and Communications, Stanley Nkwocha, revealed the details of the meeting in a statement he signed on Thursday titled, ‘UNGA79: ExxonMobil Unveils $10bn Deep-Water Investment Plan In Nigeria.’

At the meeting, Shettima said, “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.”

He explained the administration’s efforts in ensuring ease of doing business in Nigeria saying, “The Renewed Hope Agenda places a strong emphasis on ease of doing business.

“We have initiated comprehensive reforms to streamline bureaucratic processes, enhance transparency, and provide fiscal incentives that make Nigeria an attractive destination for global investors.”

The Vice President highlighted recent policy changes by the administration, saying, “Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms.”

He added, “These decisions, while challenging in the short term, are designed to create a more stable and predictable business environment in the long run.”

Addressing the specific concerns of the oil and gas sector, the Vice President continued: “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.

“The potential ExxonMobil investment is a clear indication that we are moving in the right direction. As we welcome ExxonMobil’s renewed commitment, we see this as just the beginning.

“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.”

Earlier, the Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, Shane 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 eight billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities,” Harris said.

The centrepiece of ExxonMobil’s new strategy is the Owo project, a substantial subsea tie-back that could represent a $10bn 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 the planned divestment of its onshore assets to Seplat Energy, ExxonMobil says it aims to inject $1bn annually into maintenance operations and an additional $1.5bn to boost production by 50,000 barrels per day over the next few years.

Meanwhile, the international logistics and maritime giant, DP World, has announced plans to develop a multibillion-dollar port project in Nigeria.

The Group Chairman & CEO of DP World, Ahmed bin Sulayem, revealed the company’s intentions during a courtesy visit to Shettima on the sidelines of the ongoing United Nations General Assembly in New York.

“The proposal comes as a direct response to President Tinubu’s aggressive investment drive and efforts to improve the ease of doing business in the country,” said Nkwocha.

At the meeting, Sulayem noted, “Nigeria is a massive market with hugely underutilised potentials. The Nigerian market can dominate this sector in Africa. It is a major African country with a huge asset and resource base.

“With our supply chain of over 2,500 points of sale to Nigeria, we will bring in the requisite capital, human and material resources needed to achieve this feat.”

The DP World chief expressed confidence in the Nigerian economy, citing the country’s vast import and export market as a key factor in their decision to invest.

Welcoming the initiative, Vice President Shettima said the “proposal is a testament to President Bola Tinubu’s avowed commitment to attracting foreign investments” to Nigeria.

He emphasised the administration’s ongoing efforts to create a more investor-friendly environment.

“Nigeria is open to investors from around the world. We are witnessing a total rejuvenation in terms of economic policies aimed at freeing up the economy and making way for a free, fair, and enduring market,” the VP stated.

Vice President Shettima also assured the investors of the government’s full support and the administration’s dedication to facilitating foreign investment and economic growth.

Others present at the meetings included the Minister of Industry, Trade, and Investment, Dr Doris Uzoka-Anite; the Minister of Arts, Culture, and Creative Economy, Hannatu Musawa; and the Minister of Youth Development, Dr Jamila Ibrahim Bio, among many others.