Nigeria’s oil production saw a 10.15% increase in the second quarter (Q2). Credit: Saknarong Butsabong/Shutterstock.

ExxonMobil has outlined plans for a $10bn investment in offshore oil operations in Nigeria, a presidential spokesperson said citing company executives, reported Reuters.

The investment proposal was made public during discussions between Nigeria’s Vice-President Kashim Shettima and Exxon’s Nigeria operations CEO Shane Harris.

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Exxon’s investment strategy includes a focus on the Owo project, a substantial deep-water initiative with an estimated cost of $10bn.

The company is also set to invest around $2.5bn annually to enhance oil production by 50,000bpd over the next few years.

Despite agreeing to divest its onshore assets to Seplat Energy for $1.3bn, Exxon remains committed to maintaining its operations in Nigeria.

Harris said that Exxon is working with the office of Nigeria’s president “to secure favourable fiscal arrangements that will make this significant investment possible”.

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Shettima said: “This potential investment by ExxonMobil aligns perfectly with President Bola Tinubu administration’s vision for a more investment-friendly Nigeria.

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

Nigeria’s oil production saw a 10.15% increase in Q2. The average output reached 1.41 million barrels per day (mbbl/d), a notable rise from 1.22mbbl/d in the previous year.

Last month, Bloomberg reported that ExxonMobil was considering the sale of a package of conventional oil assets in the Permian Basin.

The potential transaction could be worth approximately $1bn.

The sale aligns with the company’s focus on expanding its shale production, particularly following its $60bn acquisition of Pioneer Natural Resources earlier this year.