ExxonMobil has announced a $10 billion investment plan in Nigeria’s offshore oil operations. Nigeria’s Vice President, Kashim Shettima, disclosed this during a meeting with ExxonMobil executives at the 79th United Nations General Assembly in New York.
The energy firm also plans to invest $1 billion annually in maintenance operations and an additional $1.5 billion to boost production by 50,000 barrels per day over the next few years. Shane Harris, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, confirmed the plan. He stressed that ExxonMobil is shifting from onshore to offshore extraction in the Niger Delta, which is a recent trend among international oil companies (IOCs) in Nigeria. The company is in ongoing discussions with Seplat Energy to sell its onshore assets for $1.2 billion. Similarly, in January, Shell Plc announced plans to offload its onshore assets.
Shettima said ExxonMobil’s investment plan aligns with President Bola Tinubu’s vision of creating an investment-friendly environment. However, West Africa Weekly finds a deeper layer to the proposal. The plan follows a common trend seen across Africa, where Western corporations prioritise raw material extraction with limited engagement or benefit to the local economy.
Journalist David Hundeyin noted in a recent expository that this investment is common with America and contrasts with the Chinese, who allow for mutual benefits for African economies. Western financial institutions generally use a model that pushes Africa to produce unprocessed industrial inputs and cash crops for immediate export. This can be seen in projects like the $10 billion Lobito Corridor railway in Angola. Observing the route for this proposed railway shows that the investment majorly serves to transport minerals from the mine to the port with minimal contact with the local population.
Therefore, ExxonMobil’s $10 billion announcement is another concerning investment.
Read More: Lobito Corridor plan illustrates stark poverty of American imagination in Africa.
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