ExxonMobil opens up on leaving Nigeria

ExxonMobil has reaffirmed its long-term commitment to Nigeria, vehemently dismissing claims of a planned exit and emphasising its sustained support for the country’s oil industry.

Shane Harris, ExxonMobil Nigeria Managing Director, gave this promise during a high-level meeting with Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), at the Ministry headquarters in Abuja.

The meeting took place against the backdrop of ExxonMobil’s planned sale of its entire stake in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited.

Harris emphasized ExxonMobil’s ongoing commitment to the Nigerian oil and gas sector, announcing new investments aimed at bolstering the country’s energy landscape. “We are excited about the prospects these new investments bring.

Our partnership with the Nigerian government is crucial for sustainable growth, and we look forward to continuing our collaboration as we have no plan to leave,” Harris stated.

The Special Assistant on Media and Communications to the petroleum minister, Nneamaka Okafor, echoed these sentiments in a statement, highlighting the positive discussions between ExxonMobil and the Nigerian government. Harris’s statements reaffirmed the strong relationship and mutual goals shared by both parties.

Senator Lokpobiri, on his part, reiterated the Federal Government’s dedication to fostering a conducive environment for both international and independent investors in the energy sector. “We are dedicated to ramping up production and ensuring a supportive environment for all investors by doing everything possible to maintain investor confidence in our country,” Lokpobiri noted.

He also commended ExxonMobil’s commitment to Nigeria, aligning it with the nation’s objectives for the energy sector’s future. “ExxonMobil’s planned investments are commendable and greatly appreciated. This renewed relationship is a testament to the mutual goals we share for the future of our energy sector,” he added.

Discussions also covered the ministry’s support for international and independent oil operators, with Lokpobiri assuring Harris of the government’s unwavering support. “We fully support ExxonMobil and other IOCs, just as we do with independent operators. Our collaborative efforts are key to the sustainable growth of our energy sector,” he stated.

The backdrop to these discussions includes recent developments reported on May 31, 2024, indicating that Nigeria could potentially add 480,000 barrels to its daily crude oil output.

This development follows steps taken by the Nigerian National Petroleum Company Limited (NNPC) and ExxonMobil to resolve their dispute over the sale of ExxonMobil’s assets to Seplat Energy.

A protracted dispute that began in 2022 had far-reaching financial consequences for Nigeria, resulting in a staggering $30 billion loss over two and a half years, as well as a daily reduction of approximately 480,000 barrels of crude oil. However, following recent interventions, notably President Bola Tinubu’s mediation efforts, a resolution is now in sight, marking the end of the lengthy legal battle and ushering in a new era of cooperation and growth opportunities in Nigeria’s energy sector.

In essence, ExxonMobil’s ongoing engagement and fresh investments in Nigeria demonstrate the company’s enduring dedication to the country’s energy industry, reaffirming its long-term partnership and growth prospects.

The collaborative effort between ExxonMobil and the Nigerian government seeks to foster a sustainable and stable energy sector, positioning Nigeria for continued success and prominence in the global oil and gas market.