ExxonMobil has announced its commitment to invest US$10 billion in Nigeria’s deep-water oil operations, a move welcomed by the Nigerian government as a clear indication of the country’s improving investment climate.
The announcement was made by Shane Harris, the chairman and managing director of ExxonMobil Affiliates in Nigeria, during a high-level meeting with Vice President Kashim Shettima on the sidelines of the ongoing 79th session of the United Nations General Assembly, UNGA, in New York.
Harris stated, “Our commitment to Nigeria remains unwavering. As we celebrate 70 years of oil production and 8 billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities.” He elaborated that the Owo project, a substantial subsea tie-back, is central to ExxonMobil’s strategy and could represent the US$10 billion investment.
In response to the announcement, Vice President Shettima highlighted the significance of ExxonMobil’s investment as evidence of the Tinubu administration’s economic reforms and investment-friendly policies.
“This potential investment by ExxonMobil aligns perfectly with President Bola Ahmed Tinubu’s administration’s vision for a more investment-friendly Nigeria,” he said, adding that the government is committed to creating an enabling environment for transformative projects.
Shettima also discussed recent policy changes, such as unifying the exchange rate, removing petrol subsidies, and implementing tax reforms, aimed at fostering a stable and predictable business environment.
He noted, “Our administration has taken bold steps… These decisions, while challenging in the short term, are designed to create a more stable and predictable business environment in the long run.”
Moreover, ExxonMobil plans to maintain its investment strategy despite divesting its onshore assets to Seplat Energy.
Harris indicated that the company intends to inject US$1 billion annually into maintenance operations and an additional US$1.5 billion to increase production by 50,000 barrels per day over the next few years.
The announcement comes concurrently with plans from DP World to develop a multibillion-dollar port project in Nigeria, reflecting a growing interest in the nation’s investment potential.
Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, noted, “Nigeria is a massive market with hugely underutilised potentials… We will bring in the requisite capital, human and material resources needed to achieve this feat.”
Vice President Shettima welcomed this proposal, underscoring the administration’s commitment to creating an investor-friendly environment.
He stated, “Nigeria is open to investors from around the world. We are witnessing a total rejuvenation in terms of economic policies aimed at freeing up the economy and making way for a free, fair, and enduring market.”
- Reps Demand GCON Title for Speaker, Decry Discrimination Against House - October 4, 2024
- FG Prepares Evacuation of Citizens in Lebanon Amid Israel-Hezbollah Conflict - October 2, 2024
- Tinubu Departs for Annual Leave in the United Kingdom - October 2, 2024