ExxonMobil has decided not to renew a 33-year-old lease on its expansive offices in the Lekki area of Lagos which expires on Friday, Reuters is reporting.
The development coincides with the impending completion of ExxonMobil’s plan to sell its land and shallow-water assets to Seplat Energy as agreed in 2022.
On May 30, the Nigerian National Petroleum Company (NNPC) Limited said it signed a settlement agreement for the divestment of ExxonMobil’s stake in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy.
In a Reuters report on May 30, an oil sector regulator said the agreement signed between NNPC and ExxonMobil’s Nigerian subsidiary is a “precursor to regulatory approval”.
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“Yet Exxon’s relocation to smaller offices and an absence of any new investments highlight how serious it is about scaling down its Nigerian operations, even as the country’s government turns on the charm for multinational oil firms,” the report reads.
The publication said Exxon is relocating staff from the 12-floor Mobil House, which is reportedly leased at the cost of $10 million annually.
The employees, Reuters said, would be moved to a six-floor office building 22 kilometres away in the Ikoyi area, built to accommodate half the personnel working at the former offices.
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“The new office leaves no one in doubt about its future plans for Nigeria,” a staff member of the company told Reuters.
Exxon did not immediately comment on its relocation plans, Reuters said.
President Bola Tinubu, on May 28, directed NNPC and the ministry of state for petroleum resources (oil) to resolve the divestment issue delaying the Seplat and ExxonMobil deal.
The deal has been stalled for over two years.
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