Nigeria Says Exxon Weighs $10B Offshore Oil Funding

Exxon Mobil Corp. is contemplating investing as a lot as $10 billion in Nigeria’s offshore oil business over the approaching years, regardless of finalizing the sale of shallow-water property to a neighborhood agency, the nation’s authorities mentioned. 

The supermajor is engaged on growing the deepwater Owo venture, Nigerian Vice President Kashim Shettima mentioned after assembly Exxon Nigeria chairman Shane Harris on the sidelines of the United Nations Normal Meeting in New York. The corporate additionally proposed to spend $2.5 billion yearly to spice up oil output by 50,000 barrels per day over the following few years, Shettima mentioned.

Exxon didn’t verify the dimensions or timing of the funding. “A profitable divestment of our shallow water property in Nigeria will open up alternatives for future funding,” spokesperson Michelle Grey mentioned an announcement. “We’re at all times in search of alternatives in our world portfolio and are dedicated to our deepwater operations offshore Nigeria.”

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Africa’s largest oil producer has constantly failed to fulfill its OPEC goal for pumping oil due to years of underinvestment. The oil business is crucial to authorities revenues and the naira, the native forex. The federal government is attempting to spice up funding by implementing reforms on taxation, gasoline subsidies and the change charge.

“The potential ExxonMobil funding is a transparent indication that we’re shifting in the proper path,” the Nigerian presidency posted on its X account on Thursday. “As we welcome ExxonMobil’s renewed dedication, we see this as only the start.”

The Nigerian presidency quoted Exxon’s Harris as saying the corporate is working “to safe favorable fiscal preparations that may make this important funding doable.”

Final month, Nigerian regulators mentioned they anticipated to formally consent to Exxon’s sale of oil and gasoline property to Seplat Power Plc later this 12 months, ending a hiatus that has stalled the conclusion of a $1.3 billion transaction that was first introduced in February 2022. 

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