Exxon proposes $10 billion investment in Nigeria’s deepwater oil

US supermajor ExxonMobil has proposed a $10 billion investment in developing Nigeria’s deep-sea oil resources, Stanley Nkwocha, spokesman and senior special assistant to the Nigerian president, said in a statement on Thursday.

Nigeria’s Vice President Kashim Shettima “welcomed ExxonMobil’s proposed $10 billion investment in Nigeria’s deepwater oil operations, describing it as clear evidence of the administration’s economic reforms and investment-friendly policies,” the statement said.

Shettima on Wednesday held a high-level meeting with ExxonMobil executives on the sidelines of the ongoing 79th session of the United Nations General Assembly in New York, the Nigerian presidency said.

Oil theft and pipeline vandalism have long plagued Nigeria’s oil and gas industry, often leading to force majeure at key crude oil export terminals.

International majors have reduced their exposure to Nigeria’s energy sector in recent years, with transparency in licensing rounds being one of the reasons for Big Oil to divest from their Nigerian assets, in addition to oil theft and frequent pipeline damage.

ExxonMobil plans to sell its Nigerian shallow water business to Seplat, Nigeria’s largest energy company by market value, in a $1.3 billion deal that has yet to be approved by the regulator. regulation.

Now, ExxonMobil’s new strategy in Nigeria will focus on the Owo project, a substantial subsea link that could represent a $10 billion investment, the president’s spokesman said today.

“We are working closely with the office of the president and the special adviser to the president to secure favorable tax arrangements that will make this significant investment possible,” Shane Harris, president and general manager of ExxonMobil’s Nigerian subsidiaries, was quoted as saying in the press release. release from the presidency.

“Our commitment to Nigeria remains unwavering. As we celebrate 70 years of oil production and 8 billion barrels produced, we are not retiring, but refocusing our investments on deepwater opportunities,” Harris added.

By Charles Kennedy for Oilprice.com

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