ExxonMobil has announced plans to invest in Nigeria’s deepwater oil, gas sector. Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria made the announcement and said the move is part of the firm’s ongoing commitment to the country’s energy sector.
The eyes on investing US $10bn in its Owo project in Nigeria, a major subsea tie-back project. Harris emphasized that despite divesting some onshore assets to Seplat Energy, ExxonMobil remains dedicated to Nigeria’s deep-water oil operations.
The company plans to invest $1 billion annually in maintenance operations and allocate an additional $1.5 billion to increase production by 50,000 barrels per day in the coming years. He also stated that ExxonMobil is collaborating with the Nigerian government to secure favorable fiscal arrangements for these investments.
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Investment-friendly policies
Vice President Shettima welcomed ExxonMobil’s commitment, stating that it aligns with Nigeria’s economic reforms and President Bola Ahmed Tinubu’s investment-friendly policies. He highlighted recent government initiatives, including exchange rate unification, subsidy removal, and tax reforms, which aim to create a stable business environment and attract global investors. Additionally, Shettima assured that the government is revising the fiscal framework for deep-water operations to balance attracting investments while ensuring fair returns for Nigeria.
The potential investment signals confidence in Nigeria’s oil and gas sector, as well as the government’s ongoing efforts to improve the ease of doing business and create an enabling environment for transformative projects.