ExxonMobil is vacating its expansive offices in Lagos as part of a broader strategy to scale down its operations in Nigeria. The 33-year-old lease on its current premises expires on Friday, and the company will relocate to a smaller office facility, according to three insiders who spoke to Reuters.
This move aligns with similar actions by other oil giants such as Shell, TotalEnergies, and Eni, which have attempted to exit Nigeria’s oil-rich Niger Delta in recent years due to security concerns, although regulatory obstacles have hindered these efforts.
In January, Shell announced an agreement to sell its 30% stake in the Shell Petroleum Development Company (SPDC) to a consortium of primarily local companies for up to $2.4 billion. Similarly, ExxonMobil, Eni, and Equinor have divested assets in Nigeria recently, redirecting 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 Nigerian oil sector regulator indicated that a recent agreement between the Nigerian National Petroleum Corporation (NNPC) and Exxon’s local unit is a “precursor to regulatory approval.”
Despite the government’s efforts to attract multinational oil firms, Exxon’s move to smaller offices and the lack of new investments signal a scale-down in its Nigerian operations. 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 in the upscale Ikoyi area, 22 kilometers away. This new building is designed to accommodate half the personnel of the former offices.
ExxonMobil has stated that following the disposal to Seplat Energy, 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).
The reduction in operations by oil companies in Nigeria is driven by several factors, including oil theft, which has undermined the profitability and sustainability of their ventures. Recently, ExxonMobil also exited Equatorial Guinea after nearly 30 years.
