ExxonMobil Proposes $10 Billion Investment in Nigeria's Deepwater Oil Operations

The announcement follows a high-level meeting between Nigerian officials and ExxonMobil executives during the 79th Session of the United Nations General Assembly in New York. Despite challenges such as oil theft and pipeline vandalism that have historically affected Nigeria’s oil sector, ExxonMobil aims to refocus its strategy on deepwater opportunities. In addition to the proposed investment, the company plans to allocate $1 billion annually for maintenance operations and invest $1.5 billion to increase production capacity by 50,000 barrels per day over the coming years. This investment strategy comes at a time when ExxonMobil is also divesting from its shallow water assets in Nigeria, signaling a shift in its operational focus within the country.

Background on Nigeria’s Oil Industry

Nigeria’s oil and gas sector has faced numerous challenges, including frequent incidents of oil theft and damage to pipelines. These issues have led to force majeure declarations at key export terminals, complicating operations for international oil companies. In recent years, several major oil firms have reduced their presence in Nigeria, citing concerns over transparency and security, which has prompted ExxonMobil to adapt its approach.

Commitment to Nigeria

Shane Harris, chairman and managing director of ExxonMobil affiliates in Nigeria, emphasized the company’s unwavering commitment to the country despite ongoing challenges. The proposed investment aligns with Nigeria’s current administration’s vision for economic reforms and is expected to create a more conducive environment for transformative projects in the oil sector.