The Bola Tinubu administration has confirmed ExxonMobil’s proposal to invest $10 billion in Nigeria’s offshore oil sector, specifically targeting the Owo deep-water project. This announcement was made public through a presidential spokesperson on Thursday.
The investment was discussed during a meeting between Nigeria’s Vice President Kashim Shettima and Shane Harris, the CEO of Exxon’s Nigerian operations, at the U.N. General Assembly in New York.
Stanley Nkwocha, Senior Special Assistant to the Vice President on Media and Communications, provided details of the discussions in a statement titled “UNGA79: ExxonMobil Unveils $10bn Deep-Water Investment Plan in Nigeria.”
During the meeting, Shettima emphasized, “This potential investment by ExxonMobil aligns perfectly with President Bola Tinubu’s vision for a more investment-friendly Nigeria. We are committed to fostering an environment that supports transformative projects.”
He highlighted the administration’s ongoing efforts to improve the ease of doing business in Nigeria, stating, “The Renewed Hope Agenda focuses on simplifying business operations.” He further mentioned that comprehensive reforms are being introduced to streamline bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
Shettima also noted the administration’s significant steps to unify the exchange rate, eliminate fuel subsidies, and implement tax reforms. “While these changes are challenging in the short term, they aim to establish a more stable and predictable business environment for the future,” he added.
The Vice President indicated that the government is revising the fiscal framework for deep-water operations, aiming to balance attracting investments with ensuring fair returns for Nigerians. He stated, “The potential investment from ExxonMobil signals we are headed in the right direction. We welcome their renewed commitment as just the beginning of our journey together.”
Furthermore, ExxonMobil plans to invest an additional $2.5 billion annually to boost oil production by 50,000 barrels per day over the coming years, maintaining its operations in Nigeria even after selling its onshore assets to Seplat Energy for $1.3 billion.
Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, reiterated the company’s commitment, saying, “Our dedication to Nigeria remains strong. As we celebrate 70 years of oil production and 8 billion barrels produced, we are not stepping back; rather, we are refocusing our investments on deep-water opportunities.”
Harris also confirmed that Exxon is working closely with Nigeria’s presidential office to establish favorable fiscal arrangements to facilitate this significant investment. “We are collaborating with the President’s office and the Special Adviser to the President to secure arrangements that will make this investment feasible,” he stated.
In related news, Nigeria’s oil production increased by 10.15% in the second quarter, reaching 1.41 million barrels per day, up from 1.22 million barrels per day during the same period last year.
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