The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has initiated discussions with Indonesia regarding potential investments in the petroleum sector. This development follows a meeting between NUPRC's Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, and Indonesia's Vice Minister of Foreign Affairs, Arif Havas Oegroseno, along with Toriq Abdat, Vice President for upstream business development at Pertamina. The talks aim to foster collaboration between the two nations.
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, with a target of 3 million by 2030. Indonesia, which produces around 600,000 barrels daily, aims to reach 2.3 million by 2030.
Pertamina is looking to expand its business internationally, driven by its goal of increasing production. The company is exploring opportunities in various countries, including Malaysia, the Middle East, Iraq, and Nigeria. Abdat stated that Pertamina is seeking producing assets or projects close to production, including opportunities available before a final investment decision.
Pertamina's interest in Nigeria's 2026 licensing round is part of its strategy to secure new investments. The company is open to both competitive bids and bilateral arrangements. According to Abdat, Pertamina aims to collaborate with governments on projects that can provide energy for both countries.
Nigeria's NUPRC has institutionalized licensing rounds under the Petroleum Industry Act 2021. The last commercial bid conference held in July offered 50 assets, with 37 awarded. Eyesan noted that Nigeria's fiscal terms have been revised to compete for the same pool of capital, including reduced entry barriers such as signature bonuses.
The Indonesian delegation also expressed interest in exploring opportunities beyond crude oil and gas. Pertamina is building a fertilizer plant to reduce its dependence on Middle Eastern supplies, which have been disrupted by the current global conflict. This move is part of Indonesia's efforts to ensure food security.
The discussions between Nigeria and Indonesia mark a significant step in their collaboration on petroleum investments. With Nigeria's aggressive targets and Indonesia's experience in exploring new opportunities, both countries can benefit from their partnership. Key aspects of their collaboration include increasing production, attracting investments, and diversifying their energy portfolios.
Key points
- Nigeria and Indonesia are in talks to enhance cooperation in the petroleum sector.
- Pertamina is interested in Nigeria's 2026 licensing round.
- Both countries aim to increase their oil production levels, with Nigeria targeting 3 million barrels by 2030.
