Minister Lokpobiri Urges EPC Titans to Seize New Era of Investment towards Nigeria’s Deepwater Revival
Nigeria is sending a clear message to the global oil community: the landscape has changed and the country is open for business. Speaking at the EPC deepwater Investment Roundtable organized by the OPTS, the Honourable Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri Ph.D, called on major Engineering, Procurement, and Construction (EPC) companies to return, assuring them that previous concerns have been addressed through bold reforms and investor-focused policy shifts.
“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 confirm directly by the IOCs, who are members of the OPTS, who are already seeing the results,” the Minister stated.
He acknowledged that many EPC firms had scaled down or exited Nigeria due to legitimate challenges in the past, such as contracting inefficiencies, regulatory ambiguity, security issues, and fiscal uncertainty. “But those reasons have been significantly addressed. Through the Petroleum Industry Act (PIA), we have streamlined fiscal terms, strengthened regulatory clarity, and committed to project security in partnership with our security agencies,” Lokpobiri noted.
A key highlight of the event was the Minister’s strong appeal to International Oil Companies and deepwater operators to continue making Final Investment Decisions (FIDs). “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.”
A release by Nneamaka Okafor, Media and Communication aide to the Minister, says, the Minister reaffirmed Nigeria’s commitment to providing globally competitive incentives for deepwater operations. Under the PIA, these include: Reduced royalty rates for deep offshore production, ranging from 5% to 7.5% depending on water depth; Cost recovery limits removed, allowing companies to recover full development costs before profit sharing; Tax credits and allowances for frontier exploration; Contract sanctity and investor protection mechanisms, ensuring long-term stability; Streamlined approvals and shorter contracting cycles, now under active review to reduce delays.
Importantly, Lokpobiri made it clear that these incentives will not be limited to the IOCs alone but will also extend to the EPC contractors who execute these 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.
He also 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,” Lokpobiri concluded.
Emphasising mutual responsibility, the Minister called on EPC contractors to recommit to Nigeria and as well, invest in our local capacity and forging strategic partnerships. “We have reviewed frameworks to align with global benchmarks, but we also expect EPCs to contribute meaningfully to local content and long-term value creation,” he said.
The Roundtable ended with strong commitment between the Government, EPC contractors, and deepwater operators, reinforcing a unified resolve to reinvigorate the project pipeline, enhance local content, and ensure mutual prosperity.