ExxonMobil mulls $10bn Nigerian offshore oil investment, govt reports
Ilenre Irele
ExxonMobil is reportedly mullin investing as much as $10 billion in Nigeria’s offshore oil industry over the coming years, this is even as it has finalized the sale of shallow-water assets to a local firm, the country’s government said.
The supermajor is working on developing the deepwater Owo project, Nigerian Vice President Kashim Shettima said after meeting Exxon Nigeria chairman Shane Harris on the sidelines of the United Nations General Assembly in New York. The company also proposed to spend $2.5 billion annually to boost oil output by 50,000 bpd over the next few years, Shettima said.
Exxon didn’t confirm the size or timing of the investment. “A successful divestment of our shallow water assets in Nigeria will open up opportunities for future investment,” spokesperson Michelle Gray said a statement. “We are always looking for opportunities in our global portfolio and are committed to our deepwater operations offshore Nigeria.”
Africa’s largest oil producer has consistently failed to meet its OPEC target for pumping oil because of years of underinvestment. The oil industry is critical to government revenues and the naira, the local currency. The government is trying to boost investment by implementing reforms on taxation, fuel subsidies and the exchange rate.
“The potential ExxonMobil investment is a clear indication that we are moving in the right direction,” the Nigerian presidency posted on its X account on Thursday. “As we welcome ExxonMobil’s renewed commitment, we see this as just the beginning.”
The Nigerian presidency quoted Exxon’s Harris as saying the company is working “to secure favorable fiscal arrangements that will make this significant investment possible.”
Last month, Nigerian regulators said they expected to formally consent to Exxon’s sale of oil and gas assets to Seplat Energy Plc later this year, ending a hiatus that has stalled the conclusion of a $1.3 billion transaction that was first announced in February 2022.
28 plants behind 4,854MW of electricity in August 2024
Adewale Akintaro
28 grid-connected electricity generation plants all over the country generated a totality of 4,854 megawatts of electricity in August 2024, a 1% decline from 4,915 MWh generated in July 2024.
The Nigerian Electricity Regulatory Commission, NERC reported that these 28 grid-connected power plants recorded only a 36 percent availability factor in the month under review, even when they have an installed capacity of generating 13,625MW.
Data obtained from NERC on the operational performance of power plants indicated that the largest power producers which include Egbin ST, Delta GS, Kanji, Shell’s Afam VI, Zungeru, Odukpani, Shiroro, Jebba, Okpai, Azura IPP, and Geregu plants generated only 3,628MW, which represents 75 percent of the energy generated in 2024.
Smaller plants including Afam IV -V, Sapele ST, Olorunsogo NIPP, Omotosho NIPP, Sapele GT NIPP, Ihovbor NIPP, Geregu NIPP, Omotosho, Olorunsogo, Ibom Power, River NIPP, Omoku, Trans Amadi, Paras, Taopex Energy, Mepp and Dadin Kowa generated a total of 1,224MW being 25 percent of energy generated during the period.
Egbin ST and Zungeru plants generated the highest power of 483MW and 452MW, while Jebba trailed behind with 448MW in August 2024.
Alaoji NIPP and Omotosho NIPP generated zero MW of electricity, from their installed capacity of 500MW and 500MW respectively, while Trans Amadi generated 3MWh/h on average during the period.
NERC further disclosed that 4,150MWh/h was the average hourly available capacity from these 28 power plants in August 2024.
