ExxonMobil unveils $10 billion investment plan in Nigeria – Presidency

The Nigerian government on Thursday said ExxonMobil has proposed a $10 billion investment in Nigeria’s deep-water oil operation.

The investment was announced during a high-level meeting between Nigeria’s Vice President Kashim Shettima and the ExxonMobil executives on the sidelines of the ongoing 79th session of the United Nations General Assembly (UNGA) in New York on Wednesday, Stanley Nkwocha, senior special assistant to the president on media and communications, said in a statement on Thursday.

“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,” Mr Shettima was quoted as saying in the statement.

According to the statement, Mr Shettima elaborated on Mr Tinubu administration’s efforts in ensuring ease of doing business 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 said.

He 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. 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 the specific concerns of the oil and gas sector, according to the statement, Mr Shettima said: “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,” he said.

Earlier, 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 8 billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities.”

The statement noted that 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,” Mr Harris said.

The statement added that 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.

In February 2022, Seplat announced it had closed a deal with ExxonMobil to fully purchase its 40 per cent interest in a shallow-water joint venture with the Nigerian National Petroleum Company Limited (NNPC Ltd)

Worth $1.3 billion, the acquisition was originally planned to be consummated by mid-2022 but has been slowed by delays.