Financial Energy Review
………Moves to a smaller Office Space………
…….by Victor Egbo……..
ExxonMobil, one of the International Oil Companies in Nigeria has started to reduce its operating structures in preparation for plans to divest the company equities in the onshore businesses. This is because the ExonMobli/Seplat deal is near completion.
The Nigerian National Petroleum Company (NNPC) Limited yesterday Thursday, announced the signing of a settlement agreement facilitating the divestment of ExxonMobil’s stake in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Plc. NNPC in a statement said the entities that signed the agreement include MPNU, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc.
This development may not be unconnected to Exxon vacating its large office in Lagos, opting for a smaller, more centralised location. Similar downsizing is expected in other Nigerian cities where the company has a presence.
It is said that Exxon is relocating staff from the 12-floor Mobil House, reportedly leased at the cost of $10 million annually, to a six-floor office building 22 kilometres away in the upscale Ikoyi area, built to accommodate half the personnel working 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.
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.
