Exxon plans $10 billion oil investment in Nigeria, presidency says
26/09/2024 10:18
By Felix Onuah
ABUJA, Sept 26 (Reuters) - Exxon Mobil Corp XOM.N 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)
((Elisha.Bala-Gbogbo@thomsonreuters.com; Reuters Messaging:
elisha.bala-gbgobo.thomsonreuters.com@reuters.net))