Exxon Mobil Corporation (NYSE:XOM) shares are trading lower on Thursday. The company proposed a $10 billion investment in Nigeria's deep-water oil operations.
Exxon plans to focus on developing its Owo project, which involves a substantial subsea tie-back that could amount to a $10 billion investment.
Moreover, ExxonMobil 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, despite plans to divest onshore assets to Seplat Energy.
Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, Shane Harris, said, "We're working closely with the President's office and the Special Adviser to the President to secure favourable fiscal arrangements that will make this significant investment possible."
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Nigerian Vice President Kashim Shettima stated, "This potential investment by ExxonMobil aligns perfectly with the President Bola Ahmed Tinubu administration's vision for a more investment-friendly Nigeria. We are committed to creating an enabling environment for such transformative projects."
This announcement coincides with international maritime giant DP World revealing plans to develop a multibillion-dollar port project in Nigeria.
Investors can gain exposure to XOM via EA Series Trust Strive U.S. Energy ETF (NYSE:DRLL) and Westwood Salient Enhanced Energy Income ETF (NASDAQ:WEEI).
Price Action: XOM shares are down 1.58% at $112.96 at the last check Thursday.
Photo: Del Henderson Jr. via Shutterstock
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