The Federal Government has called on major Engineering, Procurement and Construction firms to return to Nigeria’s oil and gas industry, insisting that the challenges that once forced them out have been dismantled through reforms and fresh incentives.
The call was contained in a press statement by the Special Adviser on Media and Communication to the Minister of State for Petroleum Resources (Oil), Nneamaka Okafor, on Sunday. According to the statement, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, told participants at the EPC Deepwater Investment Roundtable in London organised by the Oil Producers Trade Section that Nigeria’s oil landscape had changed and was now open for business.
He maintained that the government had undertaken bold reforms to strengthen investor confidence and ensure long-term stability in the sector. “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 was quoted as saying.
The statement noted that several EPC giants had previously scaled down or left Nigeria altogether because of contracting inefficiencies, regulatory uncertainty, security concerns, and fiscal instability. Lokpobiri, however, maintained that these barriers had now been cleared.
“But those reasons no longer exist. Through the Petroleum Industry Act, we have streamlined fiscal terms, strengthened regulatory clarity, and committed to project security in partnership with the Nigerian Navy and other security agencies,” he said.
A major focus of the roundtable was the need for international oil companies and deepwater operators to move forward with Final Investment Decisions. Lokpobiri stressed that the return of EPC contractors was tied directly to the project pipeline.
“The EPCs will not return if there are no projects,” he explained. “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.”
The government, according to the minister, has committed to globally competitive incentives for deepwater operations. Provisions under the PIA include reduced royalty rates for offshore production ranging from five to 7.5 per cent, depending on water depth, removal of cost recovery limits to allow companies to recoup full development costs before profit sharing, tax credits and allowances for frontier exploration, as well as strengthened investor protection and streamlined contracting processes.
Lokpobiri emphasised that such incentives would not be restricted to international oil companies but would also extend to EPC contractors. “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.
He further highlighted the potential of Nigeria’s deepwater basin, describing it as “a massive space of opportunity”. He urged EPC firms to reassess Nigeria, not through the difficulties of the past, but in light of the progress already achieved and the vast opportunities that lie 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 concluded.
The statement added that the roundtable ended with renewed commitment between government, EPC contractors, and deepwater operators to revive the project pipeline, enhance local content, and ensure mutual prosperity in Nigeria’s oil sector.
On August 23, 2025, The PUNCH reported that the Federal Government reaffirmed its commitment to attracting international oil companies back to Nigeria’s energy sector with globally competitive incentives. This was as American oil giant Vaalco Energy signalled plans to re-enter the country’s oil and gas industry.
Vaalco Energy, a New York Stock Exchange-listed independent oil and gas exploration company, expressed its interest in acquiring Svenska’s Production Sharing Contract interest in Oil Mining Lease 145 and to discuss regulatory requirements for its re-entry into Nigeria.
