The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has restated the federal government’s commitment to offering globally competitive incentives for deepwater oil operations in Nigeria.
In a statement issued by his media aide, Nneamaka Okafor, Lokpobiri said Nigeria is sending a strong signal to the global oil community that its oil and gas sector has been reformed and is open for business.
Speaking at the Engineering, Procurement and Construction (EPC) deepwater investment roundtable in London, organised by the Oil Producers Trade Section (OPTS), the minister urged major EPC companies to return to Nigeria. He assured them that past challenges—such as contracting inefficiencies, regulatory uncertainty, security issues, and fiscal instability—had been addressed through bold reforms and the Petroleum Industry Act (PIA).
“When we say Nigeria is open for business, we’re not making a statement of intent, we’re pointing to reforms we’ve implemented, the policies we’re enacting, and the partnerships we’re building,” he said, noting that international oil companies already operating in Nigeria are beginning to see results.
Lokpobiri outlined key incentives under the PIA, including reduced royalty rates for deep offshore production (5–7.5% depending on water depth), removal of cost recovery limits, tax credits and allowances for frontier exploration, contract sanctity protections, and shorter contracting cycles. He stressed that these benefits would not only apply to operators but also to EPC contractors, describing them as “critical players” in delivering deepwater projects.
“The EPCs will not return if there are no projects. And there can be no projects if operators are not investing,” he said, urging international oil companies to continue making Final Investment Decisions (FIDs).
The minister also pointed to Nigeria’s deepwater basin as a “massive space of opportunity,” calling on EPC firms to re-engage with the sector. He pledged the government’s continued efforts to remove barriers, guarantee security in partnership with the Navy and other agencies, and foster long-term stability for investors.
The roundtable concluded with a commitment by the government, EPC contractors, and deepwater operators to revive Nigeria’s project pipeline, enhance local content, and drive mutual prosperity.
