The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has reaffirmed the federal government’s commitment to providing globally competitive incentives for deepwater oil operations in Nigeria.
Speaking at the Engineering, Procurement and Construction (EPC) deepwater investment roundtable in London, organised by the Oil Producers Trade Section (OPTS), Lokpobiri called on major EPC companies to return to the country.
Lokpobiri in a statement by his Special Adviser on Media and Communication, Nneamaka Okafor, noted the oil and gas landscape has changed, adding that the country is open for business.
He also assured them that previous concerns have been addressed through bold reforms and investor-focused policy shifts.
His words: “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.
“The EPCs will not return if there are no projects. 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 commitment to providing globally competitive incentives for deepwater operations.
Under the PIA, Lokpobiri stated that these include: Reduced royalty rates for deep offshore production, ranging from 5 per cent to 7.5 per cent depending on water depth, while cost recovery limits have been removed, allowing companies to recover full development costs before profit sharing.
Besides, he mentions tax credits and allowances for frontier exploration; contract sanctity and investor protection mechanisms, ensuring long-term stability as well as streamlined approvals and shorter contracting cycles, which are now under active review to reduce delays.
Lokpobiri emphasised that the incentives will not be limited to International Oil Companies (IOCs) alone but will also extend to EPC contractors who execute technically demanding 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 declared.
The minister urged IOCs and deepwater operators to continue making Final Investment Decisions (FIDs), stressing that the return of EPC firms depends on the flow of projects.
“The EPCs will not return if there are no projects, and there can be no projects if operators are not investing,” he stated.
The minister highlighted the size and attractiveness of Nigeria’s deepwater basin, calling it “a massive space of opportunity.”
He encouraged EPC firms to “look again” at Nigeria, not through the lens of the past, but through the progress already made and the vast potential still ahead.
“The government is not just committed; we are deliberate. We are removing barriers, incentivising performance, and building partnerships that last. But we need you, your expertise, your technology, your capacity. Let us do this together, ” he added.
