Why ExxonMobil wants to invest $10 billion in Nigeria's oil sector

• ExxonMobil has disclosed plans to invest $10 billion in Nigeria’s offshore oil operations
• Nigeria’s Vice President, Kashim Shettima, disclosed this during a meeting with Exxon’s executives at the UNGA in New York
• The development follows a pledge by Coca-Cola to invest $1 billion in Nigeria to boost its operations 

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

ExxonMobil Corp. has announced plans to invest $10 billion in Nigeria’s offshore oil operations as part of a new investment strategy.

Vice President Kashim Shettima announced the news in a statement during a meeting with ExxonMobile executives in New York, held on the sidelines of the 79th Session of the United Nations General Assembly.

Exxon Mobile moves to up its investment in Nigeria to $10 billion Credit: boonchai wedmakawand
Source: Getty Images

ExxonMobil to sell assets to Seplat

The development comes despite the oil giant’s recent agreement to sell its onshore assets to Seplat Energy for $1.3 billion, a move aimed at downsizing its Nigerian operations.

The central part of the oil company’s new strategy is the Owo project, a substantial subsea project estimated at $10 billion.

The firm also plans to invest $1 billion annually in maintenance operations and an additional $1.5 billion to boost production by 50,000 barrels daily in the following years.

ExxonMobil Chairman and Managing Director in Nigeria, Shane Harris, disclosed that the firm is working closely with the office of the president of Nigeria to secure suitable fiscal arrangements to make the investment possible.

Coca-Cola pledges new investment amid low FDI

According to reports, Nigeria’s oil production increased by 10.15% in the second quarter of 2024, reaching an average of 1.41 million barrels daily, relative to 1.22 million in the same period last year.

Exxon’s pledge comes as soft drinks giant Coca-Cola pledged to invest about $1 billion in Nigeria, which many say is a seasonal promise by the Coke maker.

Nigeria is currently battling low foreign direct investment (FDI). Many multinationals are exiting the country due to its currency devaluation, which has impacted their profit margins.

Recently, PZ Cussons disclosed plans to close shops in Africa after 145 years, citing the naira devaluation.

Multinationals such as GSK, P&G, and Sanofi have exited the country due to foreign exchange issues.

Dangote confirms ownership of oil blocks

Legit.ng earlier reported that the Chairman of Dangote Group, Aliko Dangote, has asked the Nigerian government to end the petrol subsidy entirely.

The Nigerian billionaire said removing the petrol subsidy would help to determine the actual petrol consumption in Nigeria.

Dangote also confirmed the ownership of two oil blocks in the upstream sector, saying that the blocks will begin production next month.

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Source: Legit.ng