Exxon Mobil Corp has proposed a $10 billion investment in offshore oil operations in a new investment push in Nigeria, a presidential spokesperson said on Thursday, citing company executives.
The investment was announced during talks between Nigeria’s Vice President Kashim Shettima and the CEO of Exxon’s Nigeria operations Shane Harris on the sidelines of the U.N. General Assembly in New York on Wednesday, presidential spokesperson Stanley Nkwocha said in a statement.
Exxon plans to focus on developing its Owo project, a sizable deep-water project estimated to cost $10 billion.
The producer also plans to spend $2.5 billion annually to boost oil output by 50,000 barrels per day (bpd) over the next few years and maintain its Nigerian operations, despite agreeing to sell its onshore assets to Seplat Energy for $1.3 billion.
Exxon is working closely with the office of Nigeria’s president “to secure favourable fiscal arrangements that will make this significant investment possible,” Harris was quoted as saying.
An Exxon spokesperson didn’t immediately respond to a request for comment.
Production of oil, which accounts for the bulk of Nigerian government revenue and foreign exchange, increased by 10.15% in the second quarter, averaging 1.41 million bpd, up from 1.22 million bpd a year earlier.
But Africa’s largest oil producer is still grappling with challenges in its oil industry, including large-scale theft and sabotage, despite passing a law three years ago to ease regulatory uncertainties and attract investments.
“This potential investment by ExxonMobil aligns perfectly with President Bola Tinubu administration’s vision for a more investment-friendly Nigeria,” Shettima said. “We are committed to creating an enabling environment for such transformative projects.”
(Reporting by Felix Onuah; Writing Elisha Bala-Gbogbo; Editing by Mark Potter)