Nigeria To Grow Oil Production With ExxonMobil’s Deep-Water Operations

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Nigeria Set to Boost Oil Production with $10 Billion ExxonMobil Investment

Nigeria plans to increase its oil production capacity and meet its OPEC quota through a proposed $10 billion investment from ExxonMobil in deep-water oil operations.

Government Commitment to Investment

Vice President Kashim Shettima fully supports this investment, viewing it as a sign of the government’s economic reforms and commitment to fostering an investment-friendly environment. He discussed this during a meeting with ExxonMobil executives at the 79th Session of the United Nations General Assembly in New York.

“Moreover, this potential investment aligns perfectly with President Bola Ahmed Tinubu’s vision for an investment-focused Nigeria. Consequently, we are dedicated to creating a welcoming atmosphere for transformative projects,” Shettima stated.

Enhancing the Business Climate

Furthermore, the Vice President outlined the administration’s efforts to improve Nigeria’s business landscape. The Renewed Hope Agenda emphasizes easing business operations through reforms that streamline processes, increase transparency, and offer fiscal incentives to attract global investors.

In addition, recent changes include unifying the exchange rate, eliminating fuel subsidies, and implementing tax reforms. “Although these decisions may create short-term challenges, they aim to establish a stable business climate for the future,” he noted.

Focus on Oil and Gas Sector

In this context, Shettima mentioned that the government is revising its fiscal framework for deep-water operations to balance investment needs while ensuring fair returns for Nigerians. He views ExxonMobil’s potential investment as a positive development.

“As we welcome ExxonMobil’s commitment, we see this as just the beginning. Notably, we invite all investors from various sectors. The message is clear: Nigeria is ready for business, and the Tinubu administration will support your success,” he added.

ExxonMobil’s Strategic Vision

Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, reaffirmed the company’s commitment. “Our loyalty to Nigeria remains strong. As we celebrate 70 years of oil production and 8 billion barrels produced, we focus our investments on deep-water opportunities,” he remarked.

Furthermore, a major part of ExxonMobil’s strategy includes the Owo project, which represents a $10 billion investment. Harris mentioned that the company collaborates with the President’s office to secure the necessary fiscal arrangements for this endeavor.

Despite plans to divest its onshore assets to Seplat Energy, ExxonMobil will invest 1billionannuallyinmaintenanceandanadditional1billionannuallyinmaintenanceandanadditional1.5 billion to increase production by 50,000 barrels per day over the next few years.

DP World Announces Major Port Project

In another noteworthy development, DP World, a major international maritime leader, plans to construct a multibillion-dollar port in Nigeria. Sultan Ahmed bin Sulayem, Group Chairman & CEO of DP World, announced this during a visit to Vice President Shettima at the UN General Assembly.

This initiative not only supports President Tinubu’s investment drive but also aims to enhance Nigeria’s business environment. Sulayem stated, “Nigeria is a vast market with incredible untapped potential. Thus, the Nigerian economy can lead this sector in Africa.”

With over 2,500 points of sale in Nigeria, DP World is ready to invest the necessary capital, human resources, and materials to realize this project.

A Reinforced Economic Vision

Finally, Vice President Shettima welcomed DP World’s initiative, viewing it as proof of President Tinubu’s commitment to attracting foreign investments. He reiterated the administration’s focus on creating a more investor-friendly climate.

“Nigeria is open to global investors. We are renewing our economic policies to build a free, fair, and sustainable market,” he concluded, assuring investors of the government’s strong support for foreign investment and economic growth.

Among those present at the meetings were the Minister of Industry, Trade, and Investment, Doris Nkiruka Uzoka-Anite; the Minister of Arts, Culture, and Creative Economy, Hannatu Musa Musawa; and the Minister of Youth Development, Dr. Jamila Ibrahim Bio, among others.

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