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The oil giant is vacating its expansive offices in Lagos, as the 33-year-old lease expires on Friday, according to three company insiders who spoke to Reuters. This move is part of Exxon’s broader strategy to scale down operations in Nigeria.
Similarly, oil giants Shell, TotalEnergies, and Eni have all attempted to exit Nigeria’s oil-rich Niger Delta in recent years due to security concerns, but these efforts have been hindered by regulatory obstacles.
In January, Shell announced its agreement to sell its 30 percent stake in SPDC to a consortium of primarily local companies for a sum of up to US$2,4 billion.
ExxonMobil, Eni, and Equinor have also divested assets in Nigeria in recent years to redirect their focus towards newer and more lucrative operations elsewhere.
ExxonMobil’s plan to sell its land and shallow-water assets to local oil firm Seplat Energy, agreed upon in 2022, is nearing completion.
The local oil sector regulator said that an agreement signed on Wednesday between the Nigerian state oil firm NNPC and Exxon’s local unit is a “precursor to regulatory approval.”
However, Exxon’s move to smaller offices and the lack of new investments means it is scaling down its operations in Nigeria, despite the government’s efforts to attract multinational oil firms.
Exxon is relocating staff from the 12-floor Mobil House in Lekki, which reportedly costs US$10 million annually in lease fees, to a six-floor office building 22 kilometres away in the upscale Ikoyi area.
This new building is designed to accommodate half the personnel working at the former offices. – Business Insider Africa
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