ExxonMobil to Invest $10 Billion in Nigeria’s Offshore Oil Sector

ExxonMobil expands investments in Nigeria’s oil sector.

Nigeria attracts $10 billion investment from ExxonMobil.

Offshore operations boost ExxonMobil’s commitment to Nigeria.

BY SHEKWOPEYELO

1. ExxonMobil plans to invest $10 billion in Nigeria’s offshore oil operations, signaling a robust commitment to the country’s energy sector. The announcement comes from the Federal Government, following a meeting between Vice President Kashim Shettima and ExxonMobil executives during the 79th Session of the United Nations General Assembly in New York.
   
2. Vice President Shettima highlighted the investment as a testament to Nigeria’s economic reforms and investment-friendly policies. “This potential investment aligns perfectly with President Tinubu’s vision for a more investment-friendly Nigeria. We are dedicated to creating an enabling environment for transformative projects,” he stated.
   
3. ExxonMobil, one of the few international oil companies (IOCs) moving away from Nigeria’s onshore operations, is refocusing its efforts on deep-water projects in the oil-rich Niger Delta. Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, emphasized that the Owo project will be central to their investment strategy, representing a significant portion of the $10 billion.
   
4. “Our commitment to Nigeria remains strong. We celebrate 70 years of oil production, having produced 8 billion barrels. We’re not retreating; we’re refocusing our investments on deep-water opportunities,” Harris said. The company aims to inject $1 billion annually into maintenance operations and an additional $1.5 billion to increase production by 50,000 barrels per day over the next few years.
5. Furthermore, ExxonMobil is in the process of divesting its onshore assets, with a deal to sell to Seplat Energy for $1.2 billion. This strategy mirrors other IOCs, such as Shell Plc, which is also shifting focus to offshore operations.
6. ExxonMobil’s investment reflects a growing confidence in Nigeria’s offshore potential, promising significant economic benefits for the region.