The Nigerian presidential spokesman and senior special assistant Stanley Nkwocha disclosed that ExxonMobil has unveiled plans to invest $10 billion in Nigeria’s deepwater oil development.

Nigeria’s Vice President Kashim Shettima “welcomed ExxonMobil’s proposed $10 billion investment in Nigeria’s deep-water oil operations, describing it as a clear testament to the administration’s economic reforms and investment-friendly policies,” says the statement.  

Shettima held a high-level meeting with ExxonMobil executives on the sidelines of the ongoing 79th Session of the United Nations General Assembly in New York, the Nigerian presidency said.

Oil theft and pipeline vandalism have long plagued Nigeria’s upstream oil and gas industry, often resulting in force majeure at the key crude oil export terminals.

International majors have shrunk their exposure to Nigeria’s energy sector in recent years, with transparency in the licensing rounds one of the reasons for Big Oil to divest from their Nigerian assets, on top of oil theft and frequent pipeline damages.

ExxonMobil intends to sell its shallow water business in Nigeria to Seplat, the biggest Nigerian energy company by market value, in a $1.3 billion deal, which has yet to be approved by the regulator.

According to the presidential spokesman ExxonMobil’s new strategy in Nigeria will focus on the Owo project, a substantial subsea tie-back that could represent a $10 billion investment.

“We’re working closely with the President’s office and the Special Adviser to the President to secure favorable fiscal arrangements that will make this significant investment possible,” said Shane Harris, chairman and managing director of ExxonMobil affiliates in Nigeria, as quoted by the press release from the presidency.

Harris emphasised that ExxonMobil’s commitment to Nigeria remains strong, noting that after 70 years of oil production and 8 billion barrels produced, the company is shifting its focus to deepwater investment opportunities.