Exxon Mobil Corp has announced plans for a $10 billion investment in offshore oil operations as part of a renewed push in Nigeria, Africa’s fourth largest economy.
This was revealed in a statement by Nigeria’s Vice President, Kashim Shettima, following a meeting with ExxonMobil executives on the sidelines of the ongoing 79th Session of the United Nations General Assembly in New York, United States.
The centerpiece of ExxonMobil’s new strategy is the Owo project, a substantial subsea tie-back with an estimated cost of $10 billion. The company also plans to inject $1 billion annually into maintenance operations and an additional $1.5 billion to boost production by 50,000 barrels per day over the next few years.
Shane Harris, the Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, explained that Exxon is working closely with the office of Nigeria’s president “to secure favourable fiscal arrangements that will make this significant investment possible.”
“This potential investment by ExxonMobil aligns perfectly with the President @officialABAT administration’s vision for a more investment-friendly Nigeria. We are committed to creating an enabling environment for such transformative projects,” Shettima declared.
Nigeria’s oil production, the primary source of government revenue and foreign exchange, rose by 10.15% in the second quarter, reaching an average of 1.41 million barrels per day (bpd), compared to 1.22 million bpd in the same period last year.
However, despite being Africa’s largest oil producer, Nigeria continues to face significant challenges in its oil industry, including widespread theft and sabotage.
