Exxon moves to smaller offices as it cuts back Nigerian operations

Seplat Energy

30/05/2024 13:13

By Isaac Anyaogu
       LAGOS, May 30 (Reuters) - ExxonMobil  XOM.N  is not
renewing a 33-year-old lease on its expansive offices in Lagos's
upscale Lekki district which expires on Friday, three sources
inside the company told Reuters, as it looks to scale down
operations in Nigeria.
    Exxon, Shell  SHEL.L , TotalEnergies  TTEF.PA  and Eni
 ENI.MI  have all sought to leave Nigeria's oil-rich Niger delta
in recent years, citing security concerns, but such moves have
been stalled by regulatory hurdles.
    ExxonMobil's plan to sell its land and shallow-water assets
to local oil firm Seplat Energy  SEPLAT.LG , agreed in 2022, is
nearing close as the local oil sector regulator told Reuters
that an agreement signed on Wednesday between Nigerian state oil
firm NNPC and Exxon's local unit is a "precursor to regulatory
approval".
    Yet Exxon's relocation to smaller offices and an absence of
any new investments highlight how serious it is about scaling
down its Nigerian operations, even as the country's government
turns on the charm for multinational oil firms.
    Exxon is relocating staff from the 12-floor Mobil House,
reportedly leased at the cost of $10 million annually, to a
six-floor office building 22 kilometers away in the upscale
Ikoyi area, built to accommodate half the personnel working at
the former offices.
    "The new office leaves no one in doubt about its future
plans for Nigeria," a staff member of the company told Reuters.
    Exxon did not immediately comment on its relocation plans.
    Having agreed on the disposal to Seplat Energy, ExxonMobil
has said it will focus on its deepwater assets in Nigeria,
through its local units Esso Exploration and Production Nigeria
and Esso Exploration and Production Nigeria (Deepwater).
    Nigerian President Bola Tinubu, who took office last year,
has made attracting investment a key priority and has directed
that divestment deals be resolved as quickly as possible.

 (Reporting by Isaac Anyaogu; Editing by David Holmes)
 ((Isaac.Anyaogu@thomsonreuters.com;))