The investment was announced during talks between Nigeria's Vice President Kashim Shettima and the Chief Executive Officer of Exxon's Nigeria operations Shane Harris on the sidelines of the United Nations General Assembly in New York on Wednesday, Presidential Spokesperson Stanley Nkwocha said in a statement.

Exxon plans to focus on developing its Owo project, a sizable deep-water project estimated to cost $10 billion.

The producer also plans to spend $2.5 billion annually to boost oil output by 50 000 barrels per day over the next few years and maintain its Nigerian operations, despite agreeing to sell its onshore assets to Seplat Energy for $1.3 billion.

Exxon is working closely with the office of Nigeria's president "to secure favourable fiscal arrangements that will make this significant investment possible," Harris was quoted as saying.

--Reuters--