FG Urges EPC Firms to Return, Says Old Barriers Now History

The Federal Government has renewed its appeal to top global Engineering, Procurement, and Construction (EPC) firms to return to Nigeria’s oil and gas sector, assuring that the obstacles which once forced them out have been dismantled through far-reaching reforms and fresh incentives.

This was disclosed in a statement issued by Nneamaka Okafor, Special Adviser on Media and Communication to the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, on Sunday.

Speaking at the EPC Deepwater Investment Roundtable in London, organised by the Oil Producers Trade Section (OPTS), Lokpobiri said Nigeria’s oil and gas landscape has undergone a transformation and is now “genuinely open for business.”

“When we say Nigeria is open for business, it is not just a slogan,” the minister stressed. “We are pointing to tangible reforms, deliberate policies, and strategic partnerships. The International Oil Companies (IOCs), who are members of the OPTS, can already testify to the results.”

According to him, past challenges such as regulatory uncertainty, fiscal instability, security concerns, and contracting bottlenecks—which had driven EPC giants away—are no longer a threat.

“But those reasons no longer exist,” Lokpobiri assured. “Through the Petroleum Industry Act (PIA), we have streamlined fiscal terms, enhanced regulatory clarity, and committed to securing oil and gas assets in partnership with the Nigerian Navy and other security agencies.”

A key focus of the roundtable was on pushing International Oil Companies and deepwater operators to advance long-delayed Final Investment Decisions (FIDs). Lokpobiri explained that EPC contractors would only return if there is a steady project pipeline.

“The EPCs will not come back if there are no projects,” he said. “And there can be no projects if operators are not investing. The government is already doing its part, but the onus is on all stakeholders to unlock projects that will attract EPC participation.”

To attract such investments, the minister outlined globally competitive incentives now enshrined in the PIA. These include reduced royalty rates for offshore production—between five and 7.5 per cent depending on water depth, removal of cost recovery limits to enable firms recover their full investments before profit-sharing, tax credits for frontier exploration, as well as stronger investor protections and streamlined contracting processes.

Lokpobiri emphasised that these incentives would not only favour international oil companies but also extend to EPC contractors, describing them as “critical partners in delivering the deepwater projects Nigeria desperately needs.”

“These global EPC giants are exactly the players who can thrive in our deepwater space,” he noted. “The same way we’ve fine-tuned incentives for operators, we will ensure EPCs benefit too, because without them, deepwater projects cannot be delivered.”

Highlighting Nigeria’s vast deepwater basin as “a massive space of opportunity,” the minister urged EPC firms to re-evaluate Nigeria not through the lens of old difficulties but with fresh eyes on the progress made and the opportunities ahead.

“The Government is not just committed; we are deliberate. We are removing barriers, incentivising performance, and building lasting partnerships. But we need you—your technology, your expertise, your capacity. Let’s make this future happen together,” Lokpobiri concluded.

The roundtable ended with renewed pledges from government, EPC firms, and deepwater operators to revive Nigeria’s offshore project pipeline, enhance local content, and drive sustainable prosperity across the oil sector.

Notably, this comes shortly after American oil giant Vaalco Energy—listed on the New York Stock Exchange—announced plans to re-enter Nigeria through the acquisition of Svenska’s interest in Oil Mining Lease (OML) 145, signalling fresh investor confidence in Nigeria’s energy landscape.