ExxonMobil Ends Long-Term Lease in Lagos as Nigeria Operations Shrink

ExxonMobil Ends Long-Term Lease in Lagos as Nigeria Operations Shrink

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ExxonMobil has decided not to renew its 33-year-old lease on its offices in Lagos’s Lekki district, according to sources within the company. This move is part of its plan to scale down operations in Nigeria. Other oil giants like Shell, TotalEnergies, and Eni have also attempted to leave the Niger Delta region due to security concerns, but have faced regulatory obstacles.

According to Reuter, ExxonMobil’s sale of its land and shallow-water assets to Seplat Energy initially agreed upon in 2022, is nearing completion. The Nigerian oil sector regulator confirmed that an agreement signed on Wednesday between NNPC and Exxon’s local unit is a crucial step towards obtaining regulatory approval. Despite this sale, ExxonMobil has assured that it will maintain a strong presence in Nigeria.

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The report added that ExxonMobil’s Nigerian unit, relocation to a modern, purpose-built office demonstrates its commitment to Nigeria. He added that they remain dedicated to the workforce, and the staffing levels will remain unchanged.

Despite the assurances, Exxon’s actions suggest a remarkable scaling down of its Nigerian operations. The company is relocating from the 12-floor Mobil House, which reportedly cost $10 million annually in lease payments, to a smaller six-floor office building in the upscale Ikoyi area, 22 kilometers away.

This new space is designed to accommodate only half of the staff currently working at the former offices, indicating a substantial reduction in its workforce and operations. This move contrasts with the Nigerian government’s efforts to woo multinational oil firms, suggesting Exxon is serious about downsizing its presence in the country.

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