ExxonMobil (XOM.N) is not renewing its 33-year-old lease on its expansive offices in Lagos’s upscale Lekki district, set to expire on Friday, according to three company sources. This move is part of ExxonMobil’s broader strategy to scale down its operations in Nigeria. The decision aligns with similar efforts by other major oil companies like Shell (SHEL.L), TotalEnergies (TTEF.PA), and Eni (ENI.MI), which have also sought to exit the Niger Delta region due to security concerns, although regulatory hurdles have delayed their departure.
Despite the downsizing, ExxonMobil maintains it will continue to have a strong presence in Nigeria. “Our move to a new modern, purpose-built office reflects our commitment to Nigeria,” said Oge Udeagha, a spokesperson for ExxonMobil’s Nigerian unit, emphasizing that staffing levels will remain unchanged.
However, the relocation from the 12-floor Mobil House, reportedly leased at $10 million annually, to a smaller six-floor office in Ikoyi, built to accommodate half the personnel, underscores the company’s intention to scale down its Nigerian operations. This shift comes as ExxonMobil’s plan to sell its land and shallow-water assets to Seplat Energy (SEPLAT.LG) nears completion, pending regulatory approval following a recent agreement with the Nigerian state oil firm NNPC.