ExxonMobil plans US$10 billion investment in Nigeria's offshore oil operations

The investment proposal was made public during discussions between Nigeria's Vice-President Kashim Shettima and Exxon's Nigeria operations CEO Shane Harris. Exxon's investment strategy includes a focus on the Owo project, a substantial deepwater initiative with an estimated cost of US$10 billion.

The company is also set to invest around US$2.5 billion/y to enhance oil production by 50 000 bpd over the next few years. Despite agreeing to divest its onshore assets to Seplat Energy for US$1.3 billion, Exxon remains committed to maintaining its operations in Nigeria.

Harris said that Exxon is working with the office of Nigeria's president "to secure favourable fiscal arrangements that will make this significant investment possible". Shettima said: “This potential investment by ExxonMobil aligns perfectly with President Bola Tinubu administration's vision for a more investment-friendly Nigeria. “We are committed to creating an enabling environment for such transformative projects.” Nigeria's oil production saw a 10.15% increase in Q2. The average output reached 1.41 million bpd, a notable rise from 1.22 million bbl/d in the previous year.

Last month, Bloomberg reported that ExxonMobil was considering the sale of a package of conventional oil assets in the Permian Basin. The potential transaction could be worth approximately US$1 billion. The sale aligns with the company’s focus on expanding its shale production, particularly following its US$60 billion acquisition of Pioneer Natural Resources earlier this year.

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