The Federal Government has revealed that ExxonMobil planned a $10 billion investment in Nigeria’s deep-water oil operations, which is expected to boost the nation’s output.

The Vice President of Nigeria, Kashim Shettima, who welcomed ExxonMobil’s proposed investment, described it as a clear testament to the administration’s economic reforms and investment-friendly policies.

According to a statement signed by the Senior Special Assistant to The President on Media & Communications (Office of The Vice President), Stanley Nkwocha, the VP, spoke during a high-level meeting with ExxonMobil executives on the sidelines of the ongoing 79th Session of the United Nations General Assembly (UNGA) in New York, United States of America.

Shettima pointed out that the investment by ExxonMobil aligned with President Bola Tinubu’s vision for a more investments-friendly Nigeria with a commitment to creating an enabling environment for transformative projects.

The proposed investment by ExxonMobil is coming at a time when the international maritime giant, DP World announced plans to develop a multibillion-dollar port project in Nigeria.

Shettima emphasised that the recent policy changes by the administration like unifying the exchange rate, removal of fuel subsidies and implementation of tax reforms while challenging in the short term are designed to create a more stable and predictable business environment in the long term.

“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.

“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 President Tinubu’s administration is your partner in progress,” he said.

Shettima said the proposal is a testament to Tinubu’s commitment to attracting foreign investments to Nigeria, emphasising the administration’s ongoing efforts to create a more investor-friendly environment.

“Nigeria is open to investors from around the world. We are witnessing a total rejuvenation in terms of economic policies aimed at freeing up the economy and making way for a free, fair, and enduring market,” he said.

The VP assured the investors of the government’s full support and the administration’s dedication to facilitating foreign investment and economic growth.
Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, Shane Harris, reaffirmed the company’s commitment to investing in Nigeria, mentioning that the centerpiece of ExxonMobil’s new strategy is the Owo project, a substantial subsea tie-back that could represent a $10 billion investment.

“Our commitment to Nigeria remains unwavering. As we celebrate 70 years of oil production and eight billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities. 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.

Despite the planned divestment of its onshore assets to Seplat Energy, ExxonMobil aims to inject $1 billion yearly into maintenance operations and an additional $1.5 billion to boost production by 50,000 barrels per day over the next few years.

Meanwhile, Group Chairman & CEO of DP World, Sultan Ahmed bin Sulayem, revealed the company’s intentions during a courtesy visit to Vice President Shettima on the sidelines of the ongoing UNGA.

The proposal, according to Shettima, comes as a direct response to President Tinubu’s aggressive investment drive and efforts to improve the ease of doing business in the country.