ExxonMobil is significantly reducing its operation and shrinking its office space in Nigeria, the largest oil-producing country in Africa.
The oil giant has vacated its large office in Lagos, opting instead for a smaller, more centralized location. This downsizing trend is expected to continue in other Nigerian cities where ExxonMobil operates.
Reuters reports that ExxonMobil is not renewing a 33-year-old lease on its expansive offices in Lagos’s upscale Lekki district which expires on Friday.
Exxon, Shell, TotalEnergies and Eni have all sought to leave Nigeria’s oil-rich Niger Delta in recent years, citing security concerns, but such moves have been stalled by regulatory hurdles.
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Reuters also reported that ExxonMobil is relocating staff from the 12-floor Mobil House, which reportedly costs $10 million annually to lease, to a six-floor office building 22 kilometres away in the upscale Ikoyi area. The new building is designed to accommodate half the personnel who worked at the former offices.
“The new office leaves no one in doubt about its future plans for Nigeria,” a staff member of the company told Reuters.
Exxon’s relocation to smaller offices and the 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 exact number of employees affected by the office closures is unclear, but the move is likely to result in job losses and a smaller overall footprint for Exxon in the country.
ExxonMobil has been operating in Nigeria for over 50 years and is one of the largest oil producers in the country. The company’s scaling back is likely to have a significant impact on the Nigerian oil and gas sector, as well as the broader economy.
Industry analysts suggest that Exxon’s decision is part of a wider trend among international oil companies (IOCs) in Nigeria. Many IOCs are facing pressure to reduce costs and streamline operations, leading to a shift towards smaller, more efficient teams.
The long-term impact of Exxon’s downsizing on the Nigerian oil and gas sector remains to be seen. However, the move underscores the challenges facing the industry and the need for adaptation in the current economic climate.
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