The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has entered strategic investment talks with Indonesia as state-owned energy giant Pertamina sets its sights on Nigeria’s upcoming 2026 petroleum licensing round.
The high-level bilateral meeting brought together Oritsemeyiwa Eyesan, NUPRC Commission Chief Executive, Arif Havas Oegroseno, Indonesia’s Vice Minister of Foreign Affairs, and Pertamina’s Vice President for Upstream Business Development Toriq Abdat.
The talks come as both countries target increase in domestic crude oil production. Currently, Nigeria produces approximately 1.7 million barrels of oil per day and is targeting 3 million by 2030 while Indonesia produces roughly 600,000 barrels daily and seeks to hit 2.3 million by 2030, a target it says it cannot meet from domestic fields alone.
Speaking at the meeting, Eyesan said Nigeria’s targets are no less demanding. “We have very aggressive targets, 3 million barrels per day by 2030, and today we are at 1.6, 1.7. We are committed to the objective and the licensing round is one of the strategies we are utilizing.”
According to the NUPRC boss, licensing rounds in Nigeria have become a recurring exercise rather than an occasional one, institutionalised under the Petroleum Industry Act 2021.
Eyesan emphasized that Nigeria’s fiscal terms have been reset in direct response to competition for the same pool of capital.
She noted that Nigeria had reduced entry barriers including signature bonuses in order to incentivise investments, adding that of the 50 assets offered in the last commercial bid conference held in July, 37 have been awarded.
The commission also noted that Nigeria is diversifying its phosphate sourcing, including a long-term transatlantic pipeline project with Morocco to serve West Africa. “Nigeria has also simplified fertiliser distribution rules that once ran to about 160 layers of regulation,” stated.
This is as the Indonesian delegation noted that it is exploring other opportunities outside crude oil and gas.
“The national oil company is building a fertiliser plant to reduce its dependence on Middle Eastern supply, and disruptions during the current global conflict. Food security relates to oil and gas because phosphate and the elements that make fertilizer,” the Indonesian delegation said.
In his remark, Abdat, Pertamina’s Vice President for Upstream Business Development, explained that the company have been given a mandate to expand its business internationally.
Abdat said Pertamina is looking for producing assets or projects close to production, including opportunities available before a final investment decision, and would consider both competitive bids and bilateral arrangements.
“In Indonesia we are producing only around 600,000 barrels. We are working on exploration towards deepwater but we found more gas than oil. That is why we go outside Indonesia, Malaysia, then the Middle East, Iraq and Nigeria.
“We would like to be in projects with governments,” he said. Producing assets, or near production, or before FID.” “Now we are looking at how we can help you reach the 3 million, and also help us provide more energy for our own consumption,” he said.
SOURCE: Businessday