The investment was announced during talks between Nigeria's Vice President Kashim Shettima and the Chief Executive Officer (CEO) of Exxon's Nigerian operations, Shane Harris, at the U.N. General Assembly in New York.
The Bola Tinubu Presidency has confirmed the proposal by the Exxon Mobil Corp to invest $10 billion in Nigeria’s offshore oil operations, particularly in the Owo deep-water project venture with an estimated cost of $10 billion.
The proposed investment was confirmed by a presidential spokesperson in a statement on Thursday.
The investment was announced during talks between Nigeria's Vice President Kashim Shettima and the Chief Executive Officer (CEO) of Exxon's Nigerian operations, Shane Harris, at the U.N. General Assembly in New York.
Senior Special Assistant to the Vice President on Media and Communications, Stanley Nkwocha, disclosed the details of the meeting in a statement he issued on Thursday titled ‘UNGA79: ExxonMobil Unveils $10bn Deep-Water Investment Plan In Nigeria.’
According to Nkwocha, Shettima at the meeting said, “This potential investment by ExxonMobil aligns perfectly with the President Bola Tinubu administration’s vision for a more investment-friendly Nigeria.
“We are committed to creating an enabling environment for such transformative projects.”
The Vice President who outlined President Tinubu’s administration’s efforts in ensuring ease of doing business in Nigeria said, “The Renewed Hope Agenda places a strong emphasis on ease of doing business.”
He said, “We have initiated comprehensive reforms to streamline bureaucratic processes, enhance transparency, and provide fiscal incentives that make Nigeria an attractive destination for global investors,” adding, “Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms.
“These decisions, while challenging in the short term, are designed to create a more stable and predictable business environment in the long run.”
Shettima further said, “We are actively working on revising the fiscal framework for deep-water operations. Our goal is to strike a balance between attracting investments and ensuring fair returns for the Nigerian people.
“The potential ExxonMobil investment is a clear indication that we are moving in the right direction. As we welcome ExxonMobil’s renewed commitment, we see this as just the beginning.
“Our doors are open to all investors across various sectors. The message is clear: Nigeria is open for business, and the President Tinubu administration is your partner in progress.”
Additionally, Exxon plans to invest $2.5 billion annually to increase oil production by 50,000 barrels per day over the next few years while continuing its operations in Nigeria, even after agreeing to sell its onshore assets to Seplat Energy for $1.3 billion.
The Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, Shane Harris, who reaffirmed the company’s commitment to investing in Nigeria, said, “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.”
Harris noted that Exxon is collaborating closely with Nigeria's presidential office to secure favorable fiscal arrangements to facilitate this substantial investment.
Harris said, “We’re working closely with the President’s office and the Special Adviser to the President to secure favourable fiscal arrangements that will make this significant investment possible.”
Nigeria's oil production surged 10.15% in Q2, reaching 1.41 million barrels per day, a significant increase from 1.22 million barrels per day in the same period last year.
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