Market News

By Nduka Orjinmo and Kevin Crowley

(Bloomberg) -- Exxon Mobil Corp. is considering investing as much as $10 billion in Nigeria’s offshore oil industry over the coming years, despite finalizing the sale of shallow-water assets to a local firm, the country’s government said. 

The supermajor is working on developing the deepwater Owo project, Nigerian Vice President Kashim Shettima said after meeting Exxon Nigeria chairman Shane Harris on the sidelines of the United Nations General Assembly in New York. The company also proposed to spend $2.5 billion annually to boost oil output by 50,000 barrels per day over the next few years, Shettima said.

Exxon didn’t confirm the size or timing of the investment. “A successful divestment of our shallow water assets in Nigeria will open up opportunities for future investment,” spokesperson Michelle Gray said a statement. “We are always looking for opportunities in our global portfolio and are committed to our deepwater operations offshore Nigeria.”

Africa’s largest oil producer has consistently failed to meet its OPEC target for pumping oil because of years of underinvestment. The oil industry is critical to government revenues and the naira, the local currency. The government is trying to boost investment by implementing reforms on taxation, fuel subsidies and the exchange rate.

“The potential ExxonMobil investment is a clear indication that we are moving in the right direction,” the Nigerian presidency posted on its X account on Thursday. “As we welcome ExxonMobil’s renewed commitment, we see this as just the beginning.”

The Nigerian presidency quoted Exxon’s Harris as saying the company is working “to secure favorable fiscal arrangements that will make this significant investment possible.”

Last month, Nigerian regulators said they expected to formally consent to Exxon’s sale of oil and gas assets to Seplat Energy Plc later this year, ending a hiatus that has stalled the conclusion of a $1.3 billion transaction that was first announced in February 2022.