The Federal Government has reiterated its commitment to investment in the deepwater sector assuring Engineering, Procurement and Construction (EPC) companies of a transformed investment environment backed by bold reforms and competitive incentives.

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the appeal while speaking at the EPC Deepwater Investment Roundtable in London organised by the Oil Producers Trade Section (OPTS).

A statement signed by the Special Adviser Media and Communication to the minister, Nneamaka Okafor, said Lokpobiri called on major Engineering, Procurement, and Construction (EPC) companies to return with the assurance that the previous concerns have been addressed through bold reforms and investor-focused policy shifts.

According to Lokpobiri, the challenges that once hindered their operations such as contracting inefficiencies to regulatory ambiguity and fiscal uncertainty have been addressed.

“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 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 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,” Lokpobiri added.

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. 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.”

To this end, 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.

The minister however made it clear that the 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 also highlighted the size and attractiveness of Nigeria’s deepwater basin, calling it a massive space of opportunity as 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,” the minister noted.

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.

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