The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has initiated discussions with Indonesia regarding potential investments in the petroleum sector. This development comes as Indonesia's national oil company, Pertamina, has expressed interest in Nigeria's upcoming 2026 licensing round. A recent meeting between NUPRC Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, and Indonesia's Vice Minister of Foreign Affairs, Arif Havas Oegroseno, as well as Toriq Abdat, Vice President for upstream business development at Pertamina, facilitated the talks.
Nigeria and Indonesia share similar priorities, including energy security, resource utilization, and attracting investments. Both countries are working to increase their oil production levels. Nigeria currently produces approximately 1.7 million barrels of oil per day and aims to reach 3 million barrels by 2030. Indonesia, which produces around 600,000 barrels daily, seeks to hit 2.3 million barrels by 2030. However, Indonesia notes that it cannot meet this target from domestic fields alone.
Pertamina is looking to expand its business internationally, with a focus on acquiring producing assets or projects close to production. The company is interested in opportunities available before a final investment decision and is open to both competitive bids and bilateral arrangements. Abdat stated that Pertamina is seeking projects with governments, particularly those that are producing or near production.
In response to Pertamina's interests, Eyesan emphasized Nigeria's aggressive targets, including reaching 3 million barrels per day by 2030. She noted that the country is currently producing 1.6-1.7 million barrels per day. The NUPRC boss highlighted that licensing rounds in Nigeria have become a recurring exercise, institutionalized under the Petroleum Industry Act 2021. The last commercial bid conference held in July offered 50 assets, with 37 awarded.
Nigeria has reset its fiscal terms to compete for the same pool of capital, reducing entry barriers, including signature bonuses, to incentivize investments. Eyesan noted that the country's licensing rounds have become more institutionalized. The Indonesian delegation also expressed interest in exploring opportunities outside crude oil and gas, including the development of a fertilizer plant to reduce dependence on Middle Eastern supplies.
The discussions between Nigeria and Indonesia also touched on food security and its relation to oil and gas. The Indonesian delegation noted that phosphate and other elements used in fertilizer production are linked to the oil and gas sector. Nigeria is also diversifying its phosphate sourcing, including a long-term transatlantic pipeline project with Morocco to serve West Africa.
Both countries agreed to maintain parallel commercial and diplomatic tracks. Nigeria has simplified fertilizer distribution rules, which previously had around 160 layers of regulation. The talks between Nigeria and Indonesia aim to enhance cooperation and investment in the petroleum sector, with potential benefits for both countries in terms of increased production and energy security.
Key points
- Nigeria and Indonesia discuss investments in the petroleum sector.
- Pertamina eyes 2026 licensing round in Nigeria.
- Both countries aim to increase oil production levels.
