VP Shettima welcomes ExxonMobil’s $10bn for Owo deepwater project

Business a.m.

Multinational oil and gas company, ExxonMobil, has reiterated its commitment to investing in Nigeria by proposing a $10 billion investment for the Owo project, a significant subsea tie-back development that would mark the company’s major investment in the country in recent times.

The development has been hailed by Vice President Kashim Shettima, who described it as a tangible result of the administration’s economic reforms and investor-friendly policies. 

Vice President Kashim Shettima was privy to ExxonMobil’s proposed $10 billion investment plan in Nigeria’s deep-water oil operations during a high-level meeting with the company’s executives on the margins of the recently concluded UNGA79 in New York, United States.

Stanley Nkwocha, the senior special assistant to the vice president on media and communications, shared the details of the meeting in a statement titled, “UNGA79: ExxonMobil Unveils $10bn Deep-Water Investment Plan In Nigeria,”

In his remarks, Vice President Kashim Shettima expressed his delight at the potential investment, which he said is in line with President Bola Tinubu’s vision of an investment-friendly Nigeria. Shettima emphasised the administration’s commitment to providing an enabling environment for transformative projects and highlighted the Renewed Hope Agenda’s focus 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,” he stated.

Shettima further underlined recent policy changes by the administration, stressing that these bold steps are geared towards creating a more stable and predictable business environment for investors like ExxonMobil in the long term.

He remarked that the administration has taken significant steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. While these changes may pose challenges in the short term, he expressed optimism they will create a more stable and predictable business environment that will foster long-term growth and investment.

Shettima also discussed specific issues pertaining to the oil and gas sector, assuring the company that the Nigerian government is actively working on revising the fiscal framework for deep-water operations to strike a fair balance between incentivizing investments and ensuring 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 the President Tinubu administration is your partner in progress,” he added.

Even as ExxonMobil is set to sell its onshore assets to Seplat Energy, the oil major is planning to inject $3.5bn into maintenance and production over the next few years, allocating $1bn annually for maintenance operations and an additional $1.5bn to boost production by 50,000 barrels per day.

Shane Harris, the chairman and managing director of ExxonMobil affiliates in Nigeria, has emphasised the critical role of the Owo project in the company’s new strategy. The potential $10 billion investment in the substantial subsea tie-back project underscores ExxonMobil’s commitment to investing in Nigeria, which is a key market for the company. 

“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,” he said.

Harris further stated that ExxonMobil is working closely with the president’s office and the special adviser to the president to establish favourable fiscal arrangements that will facilitate the investment.