ExxonMobil is downsizing its operations in Nigeria, Africa's largest oil-producing country.
- The company is relocating from its expansive offices in Lagos to a smaller office building in the upscale Ikoyi area
- Other oil giants like Shell, TotalEnergies, and Eni have also attempted to exit Nigeria due to security concerns and regulatory obstacles
- ExxonMobil has planned to sell its land and shallow-water assets to local oil firm Seplat Energy
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.
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In January, Shell announced its agreement to sell its 30% stake in SPDC to a consortium of primarily local companies for a sum of up to $2.4 billion.
Exxon Mobil, 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."
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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 $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.
Having agreed on the disposal to Seplat Energy, ExxonMobil has stated it will focus on its deepwater assets in Nigeria through its local units, Esso Exploration and Production Nigeria and Esso Exploration and Production Nigeria (Deepwater).
Oil companies are scaling back operations in Nigeria due to several reasons, including oil theft, which has undermined the profitability and sustainability of their ventures.
The oil giant also recently Exxon Mobil to leave Equatorial Guinea after nearly 30 years
