EoDB: ExxonMobil unveils $10bn deep-water investment plan in Nigeria at UNGA79

*Nigerian Vice-President (Senator) Kashim Shettima welcomes ExxonMobil’s proposed $10 billion investment in Nigeria’s deep-water oil operations, just as DP World proposes multibillion-dollar port project in the West African country’s economy

Isola Moses | ConsumerConnect

In line with the current administration’s emphasis on Ease of Doing Business (EoDB), Nigerian Vice-President (Senator) Kashim Shettima has welcomed ExxonMobil’s proposed $10 billion investment in Nigeria’s deep-water oil operations.

Vice-President Shettima, who stated this Wednesday, September 25, 2024, during a high-level meeting with ExxonMobil Executives on the sidelines of the ongoing 79th Session of the United Nations General Assembly (UNGA79), in New York, United States (US), described the deal as “a clear testament to the administration’s economic reforms and investment-friendly policies.”

This development is coming just as the international maritime giant, DP World, has announced plans to develop a multibillion-Dollar port project in Nigeria.

Stanley Nkwocha, Senior Special Assistant (SSA) to The President on Media and Communications (Office of The Vice President), Wednesday, September 25, 2024, who disclosed this development in a statement Wednesday, quoted Shettima to have said: “This potential investment by ExxonMobil aligns perfectly with the President Bola Ahmed Tinubu administration’s vision for a more investment-friendly Nigeria.

“We are committed to creating an enabling environment for such transformative projects.”

The Vice-President also elaborated on the President Tinubu administration’s efforts at ensuring Ease of Doing Business in Nigeria.

“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,” stated Shettima.

He further highlighted recent policy changes by the administration, as he said “our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms.

“These decisions, while challenging in the short term, are designed to create a more stable and predictable business environment in the long run,” he added.

As regards specific concerns of the oil and gas sector in the country, the Vice-President noted: “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.”

He said: “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.”

Earlier in his remarks, Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, had reaffirmed the company’s commitment to investing in Nigeria, noted the statement.

Harris stated: “Our commitment to Nigeria remains unwavering. As we celebrate 70 years of oil production and 8 billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities.”

The Federal Government said the centerpiece of ExxonMobil’s new strategy is the Owo project, a substantial subsea tie-back that could represent a $10 billion investment.

The ExxonMobil Chief explained: “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.”

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

DP World plans a multibillion-dollar port project

In a related development, the international maritime giant, DP World is said to have announced plans to develop a multibillion-dollar port project in Nigeria.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, revealed the company’s intentions during a courtesy visit to Vice-President Kashim Shettima on the sidelines of the ongoing United Nations General Assembly, in New York.

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

Sulayem said: “Nigeria is a massive market with hugely underutilised potentials. The Nigerian market has the capacity to dominate this sector in Africa. It is a major African country with a huge asset and resource base.

“With our supply chain of over 2,500 points of sale to Nigeria, we will bring in the requisite capital, human and material resources needed to achieve this feat.”

The DP World chief expressed confidence in the Nigerian economy, citing the country’s vast import and export market as a key factor in their decision to invest.

Welcoming the initiative, Vice-President Shettima said the “proposal is a testament to President Bola Ahmed Tinubu’s avowed commitment to attracting foreign investments” to Nigeria.

He emphasised 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,” the VP stated.

Shettima as well assured the investors of the Nigerian Government’s full support and the administration’s dedication to facilitating foreign investment and economic growth.

Others present at the meetings included 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 many others.

Kindly Share This Story