By Milcah Tanimu
ExxonMobil has unveiled plans to invest **$10 billion** in Nigeria’s offshore oil operations, marking a significant move in its investment strategy. This announcement came from Vice President **Kashim Shettima** during a meeting with Exxon executives at the **79th United Nations General Assembly** in New York.
This development follows a recent pledge by **Coca-Cola** to invest **$1 billion** in Nigeria, aimed at enhancing its operations amid challenges faced by foreign direct investment (FDI) in the country.
ExxonMobil’s investment includes the **Owo project**, a substantial subsea initiative estimated at **$10 billion**. The company also plans to allocate **$1 billion annually** for maintenance operations and an additional **$1.5 billion** to increase production by **50,000 barrels per day** in the coming years.
Shane Harris, Chairman and Managing Director of ExxonMobil in Nigeria, stated that the company is collaborating with Nigeria’s presidential office to secure favorable fiscal arrangements to facilitate this investment.
Despite ExxonMobil’s commitment, the company recently agreed to sell its onshore assets to **Seplat Energy** for **$1.3 billion** as part of a strategy to downsize its operations in Nigeria.
Nigeria’s oil production saw a **10.15%** increase in the second quarter of **2024**, reaching an average of **1.41 million barrels daily**, up from **1.22 million** in the same period last year. This growth comes amid a backdrop of multinational corporations exiting Nigeria due to currency devaluation affecting their profit margins.
In related news, Aliko Dangote, Chairman of Dangote Group, confirmed ownership of two oil blocks in Nigeria’s upstream sector, expected to begin production next month. He also urged the Nigerian government to eliminate petrol subsidies to clarify actual consumption levels in the country.
—
Let me know if you need any more adjustments!
