ExxonMobil TO INJECT $10 BILLION INTO NIGERIA’s OFFSHORE OIL PROJECTS, FG ANNOUNCES AT UNGA
Detailed Breakdown:
1. Announcement of Investment
The Federal Government of Nigeria welcomed ExxonMobil's plan to invest $10 billion in offshore oil operations. This announcement was made by Vice President Kashim Shettima during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York.
2. Focus on Deep-Water Operations
ExxonMobil, a leading international oil company, has been transitioning from Nigeria’s onshore oil operations to offshore (deep-water) opportunities. This move aligns with the broader trend of International Oil Companies (IOCs) focusing on offshore ventures in the Niger Delta region.
3. Statement by ExxonMobil
Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, reaffirmed the company’s commitment to the country. The $10 billion investment will be centered around the Owo Project, a significant subsea tie-back initiative. Harris emphasized ExxonMobil’s desire to continue deep-water exploration as it celebrates 70 years of oil production in Nigeria and 8 billion barrels produced.
4. Strategic Support and Government Engagement
Harris noted that ExxonMobil is collaborating with the Nigerian President’s office and advisors to secure favorable fiscal terms for the project. This reflects the company's long-term commitment to Nigeria’s oil sector.
5. Additional Financial Commitments
ExxonMobil plans to invest an additional $1 billion annually in maintenance operations. Furthermore, it aims to increase production by 50,000 barrels per day over the coming years with a supplementary $1.5 billion investment.
6. Onshore Divestment Trend
ExxonMobil’s focus on offshore investments follows its plan to divest from onshore oil assets in Nigeria. This is part of an ongoing deal with Seplat Energy, valued at $1.2 billion. Other oil majors, such as Shell and TotalEnergies, have also been divesting from Nigeria's onshore oil sector, signaling a shift toward offshore projects.
This investment is seen as a significant step in strengthening Nigeria’s oil sector while supporting the government’s economic reforms aimed at creating a more investment-friendly environment.
Detailed Breakdown:
1. Announcement of Investment
The Federal Government of Nigeria welcomed ExxonMobil's plan to invest $10 billion in offshore oil operations. This announcement was made by Vice President Kashim Shettima during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York.
2. Focus on Deep-Water Operations
ExxonMobil, a leading international oil company, has been transitioning from Nigeria’s onshore oil operations to offshore (deep-water) opportunities. This move aligns with the broader trend of International Oil Companies (IOCs) focusing on offshore ventures in the Niger Delta region.
3. Statement by ExxonMobil
Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, reaffirmed the company’s commitment to the country. The $10 billion investment will be centered around the Owo Project, a significant subsea tie-back initiative. Harris emphasized ExxonMobil’s desire to continue deep-water exploration as it celebrates 70 years of oil production in Nigeria and 8 billion barrels produced.
4. Strategic Support and Government Engagement
Harris noted that ExxonMobil is collaborating with the Nigerian President’s office and advisors to secure favorable fiscal terms for the project. This reflects the company's long-term commitment to Nigeria’s oil sector.
5. Additional Financial Commitments
ExxonMobil plans to invest an additional $1 billion annually in maintenance operations. Furthermore, it aims to increase production by 50,000 barrels per day over the coming years with a supplementary $1.5 billion investment.
6. Onshore Divestment Trend
ExxonMobil’s focus on offshore investments follows its plan to divest from onshore oil assets in Nigeria. This is part of an ongoing deal with Seplat Energy, valued at $1.2 billion. Other oil majors, such as Shell and TotalEnergies, have also been divesting from Nigeria's onshore oil sector, signaling a shift toward offshore projects.
This investment is seen as a significant step in strengthening Nigeria’s oil sector while supporting the government’s economic reforms aimed at creating a more investment-friendly environment.