ExxonMobil has announced plans to invest $10 billion into Nigeria’s offshore oil sector, marking a renewed commitment to the country’s oil industry. This investment will be centered around the development of the Owo project, a major subsea initiative, and comes despite the company’s recent decision to sell its onshore assets to Seplat Energy for $1.3 billion.
Nigeria’s Vice President, Kashim Shettima, shared the announcement after meeting with ExxonMobil executives at the 79th United Nations General Assembly in New York. The investment plan includes $1 billion annually for maintenance operations and an additional $1.5 billion aimed at increasing oil production by 50,000 barrels per day in the coming years.
ExxonMobil’s new strategy focuses on revitalizing the country’s offshore oil industry, with the Owo project at its core. Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, emphasized that the company is collaborating with Nigeria’s presidential office to ensure favorable fiscal conditions for the project.
Vice President Shettima highlighted that this investment aligns with the vision of Nigeria’s President @officialABAT, aiming to foster an environment that is more conducive to large-scale investments.
While Nigeria remains Africa’s largest oil producer, challenges such as theft and sabotage continue to affect the industry. However, oil production has seen a 10.15% increase in the second quarter, averaging 1.41 million barrels per day, up from 1.22 million barrels per day in the same period last year.