The Federal Government of Nigeria has expressed its approval of ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil operations. This announcement was made by Nigeria’s Vice President, Kashim Shettima, during a meeting with ExxonMobil executives at the 79th Session of the United Nations General Assembly in New York.

ExxonMobil, like several other international oil companies (IOCs), has shifted its focus from onshore operations to deep-water ventures in Nigeria’s Niger Delta region. Shettima emphasized that this investment is a clear reflection of the government’s economic reforms and pro-investment policies. He highlighted that the initiative aligns with President Bola Tinubu’s vision of fostering a more investment-friendly environment in Nigeria, with the government committed to creating the right conditions for such major projects to thrive.

ExxonMobil’s Chairman and Managing Director for Nigeria, Shane Harris, reaffirmed the company’s dedication to investing in the country. He revealed that the company’s new strategy centers around the Owo project, a significant subsea tie-back development, which could represent a $10 billion investment. Harris underscored that ExxonMobil, which has been producing oil in Nigeria for 70 years, remains fully committed to deep-water exploration. He also noted that the company is working closely with the government to secure favorable fiscal terms to enable the investment.

ExxonMobil further plans to invest $1 billion annually in maintenance and allocate an additional $1.5 billion to increase production by 50,000 barrels per day in the coming years.

It is also worth noting that ExxonMobil is in the process of divesting its onshore assets, with an ongoing $1.2 billion deal with Seplat Energy. This move follows a broader trend among international oil companies, including Shell and TotalEnergies, who are exiting Nigeria’s onshore segment in favor of offshore operations.