Oil industry giant, ExxonMobil, has said it would invest $10 billion in Nigeria’s deepwater oil operations.
The Vice President, Kashim Shettima, disclosed this on Wednesday during a high-level meeting with ExxonMobil executives on the sidelines of the ongoing 79th Session of the United Nations General Assembly in York, United States.
Shettima stated that ExxonMobile investment plan in Nigeria’s oil industry aligned with President Bola Tinubu’s vision to create a business-friendly environment for investors.
“This potential investment by ExxonMobil aligns perfectly with the President Bola Ahmed Tinubu administration’s vision for a more investment-friendly Nigeria. We are committed to creating an enabling environment for such transformative projects.
“The Renewed Hope Agenda places a strong emphasis on ease of doing business. We have initiated comprehensive reforms to streamline bureaucratic processes, enhance transparency, and provide fiscal incentives that make Nigeria an attractive destination for global investors,” Shettima said.
According to his spokesman, Stanley Nkwocha, the Vice President added that President Tinubu’s “administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms.
“These decisions, while challenging in the short term, are designed to create a more stable and predictable business environment in the long run.”
Addressing the specific concerns of the oil and gas sector, the Vice President continued: “We are actively working on revising the fiscal framework for deep-water operations. Our goal is to strike a balance between attracting investments and ensuring fair returns for the Nigerian people. The potential ExxonMobil investment is a clear indication that we are moving in the right direction.
“As we welcome ExxonMobil’s renewed commitment, we see this as just the beginning. Our doors are open to all investors across various sectors. The message is clear: Nigeria is open for business, and the President Tinubu administration is your partner in progress.”
The Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, Shane Harris, said the company’s commitment to Nigeria remains unwavering.
“Our commitment to Nigeria remains unwavering. As we celebrate 70 years of oil production and 8 billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities,” Harris said.
The centerpiece of ExxonMobil’s new strategy is the Owo project, a substantial subsea tie-back that could represent a $10 billion investment.
“We’re working closely with the President’s office and the Special Adviser to the President to secure favourable fiscal arrangements that will make this significant investment possible,” Harris explained.
ExxonMobil aims 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.