The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has reaffirmed the federal government’s resolve to offer globally competitive incentives for deepwater oil projects.
In a statement by his media adviser, Nneamaka Okafor, Lokpobiri said Nigeria is signaling to the global oil community that its energy sector has been transformed and is now open for business.
Speaking at the EPC Deepwater Investment Roundtable in London, organised by the Oil Producers Trade Section he urged major EPC firms to return, assuring them that past challenges have been addressed through bold reforms and investor-friendly policies.
“When we say Nigeria is open for business, we’re not making a statement of intent, we’re pointing to the reforms we’ve implemented, the policies we’re enacting, and the partnerships we’re building. The landscape has changed, and this can be confirmed directly from the IOCs, who are members of the OPTS, who are already seeing the results,” the minister stated.
He admitted that several EPC firms had scaled back or left Nigeria in the past, citing contracting inefficiencies, regulatory uncertainty, security concerns, and fiscal instability.
“But those reasons no longer exist. Through the Petroleum Industry Act (PIA), we have streamlined fiscal terms, strengthened regulatory clarity, and committed to project security in partnership with the Nigerian Navy and other security agencies,” Lokpobiri stated.
The minister also appealed to International Oil Companies and deepwater operators to sustain their commitment by moving ahead with Final Investment Decisions.
“The EPCs will not return if there are no projects,” he stressed. “And there can be no projects if operators are not investing. I want to thank those who are already leveraging what the government is doing, but we must do more. The projects must flow for the EPCs to come back,” he added.
The minister reaffirmed Nigeria’s resolve to make deepwater operations more attractive through globally competitive incentives.
He noted that under the PIA Act, deep offshore production now enjoys reduced royalty rates of 5 per cent to 7.5 per cent, depending on water depth.
In addition, cost recovery limits have been scrapped, allowing investors to fully recover development costs before profit sharing begins.
He highlighted additional incentives such as tax credits and allowances for frontier exploration, along with guarantees on contract sanctity and investor protection to ensure long-term stability.
He added that approval processes and contracting cycles are being streamlined and actively reviewed to cut down delays.
Lokpobiri stressed that the incentives are not designed solely for IOCs but will also cover EPC contractors responsible for executing the highly technical projects.
“These giant EPC companies, who once left, are exactly the kind of players who can thrive in deepwater.
“The same way we have fine-tuned incentives for operators, we will ensure those benefits are extended to EPCs, because without the EPCs, these projects cannot be delivered,” he noted.
