Exxon Mobil Corporation (XOM) shares took a dip on Thursday following the announcement of a substantial $10 billion investment in Nigeria’s deep-water oil operations. The company’s focus is on developing its Owo project, a significant undertaking involving a subsea tie-back that could represent a major investment.
Beyond the Owo project, ExxonMobil has also outlined plans for significant investments in other areas. The company intends to invest $1 billion annually in maintenance operations and an additional $1.5 billion to increase production by 50,000 barrels per day over the next few years. This ambitious plan comes amidst the company’s decision to divest its onshore assets to Seplat Energy.
The commitment to Nigeria has been met with enthusiasm from government officials. Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, stated that they are working closely with the President’s office and the Special Adviser to the President to secure favorable fiscal arrangements that will support this significant investment.
Nigerian Vice President Kashim Shettima echoed this sentiment, highlighting that ExxonMobil’s potential investment aligns with the President Bola Ahmed Tinubu administration’s vision for a more investment-friendly Nigeria. The government is committed to creating an enabling environment for such transformative projects.
This announcement comes on the heels of another significant investment in Nigeria’s infrastructure. International maritime giant DP World has revealed plans to develop a multibillion-dollar port project in the country.
Investors interested in gaining exposure to XOM can consider ETFs such as the EA Series Trust Strive U.S. Energy ETF (DRLL) and the Westwood Salient Enhanced Energy Income ETF (WEEI).
As of Thursday’s close, XOM shares were down 1.58% at $112.96.
