Nigeria is luring major Engineering, Procurement, and Construction (EPC) companies back to the country with bold reforms and investor-friendly policies.
Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), disclosed this at the EPC Deepwater Investment Roundtable organized by the Oil Producers Trade Section (OPTS).
Nigeria is open for business,he told global oil industry players at the event,according to a statement signed by Nneamaka Okafor, Special Adviser on Media and Communication to the Minister of State for Petroleum Resources (Oil).
The statement said:“Nigeria’s landscape has changed,” Senator Lokpobiri declared, pointing to sweeping reforms under the Petroleum Industry Act (PIA) that have addressed longstanding challenges such as contracting inefficiencies, regulatory uncertainty, security concerns, and fiscal ambiguity.
“The reasons EPC firms scaled down or left in the past no longer exist. We have streamlined fiscal terms, enhanced regulatory clarity, and partnered with the Nigerian Navy and other agencies to ensure project security.”
The statement quoted the Minister to have emphasized the critical role of International Oil Companies (IOCs) and deepwater operators in driving new projects through Final Investment Decisions (FIDs). “EPCs will not return without projects, and projects depend on operators’ investments,” he said, urging operators to capitalize on the government’s reforms.
He lauded companies already leveraging the improved environment but stressed the need for more action to ensure a steady flow of projects.
He highlighted Nigeria’s globally competitive incentives for deepwater operations under the PIA, including reduced royalty rates of 5% to 7.5% based on water depth, the removal of cost recovery limits, tax credits for frontier exploration, contract sanctity, and streamlined approval processes to reduce delays.
He noted that these incentives extend not only to IOCs , but also to EPC contractors, whose expertise is vital for executing complex deepwater projects. .
He described Nigeria’s deepwater basin as huge space of opportunity, and urged EPC firms to reconsider the country in light of its progress and untapped potential.
“We are deliberate in removing barriers, incentivizing performance, and building lasting partnerships. We need your expertise, technology, and capacity to do this together,” he added.
