The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has initiated discussions with Indonesia's national oil company, Pertamina, regarding investment opportunities in Nigeria's 2026 Licensing Round. This development follows a meeting between NUPRC Chief Executive, Mrs. Oritsemeyiwa Eyesan, Indonesia's Vice Minister of Foreign Affairs, Arif Havas Oegroseno, and Toriq Abdat, Vice President of Upstream Business Development at Pertamina. The talks aim to explore potential areas of cooperation between the two countries in the oil and gas sector.
Nigeria and Indonesia share similar priorities, including energy security, resource utilization, and investments in the sector, as both countries seek to increase oil production. Nigeria currently produces around 1.6 million to 1.7 million barrels per day (bpd), while Indonesia produces approximately 600,000 bpd and is also seeking to boost output. Nigeria has set an ambitious target of producing three million bpd by 2030, and the 2026 Licensing Round is one of the strategies being employed to achieve this goal.
Pertamina has been mandated to expand its operations internationally and is exploring opportunities in countries such as Malaysia, Iraq, and Nigeria. The company is seeking producing assets, projects nearing production, or opportunities ahead of Final Investment Decision (FID). Abdat stated that Pertamina is open to both competitive bidding and bilateral arrangements with governments, expressing interest in opportunities beyond crude oil and natural gas, particularly in the fertiliser sector.
Indonesia is currently developing a fertiliser plant to reduce its dependence on supplies from the Middle East amid disruptions caused by global conflicts. Abdat linked food security to the oil and gas sector, highlighting the importance of phosphate and other elements used in fertiliser production. In response, Eyesan noted that Nigeria's production target is ambitious and that the licensing round is one of the strategies being deployed to achieve it.
Eyesan stated that licensing rounds have become a recurring exercise in Nigeria rather than an occasional process, following their institutionalization under the Petroleum Industry Act (PIA) 2021. The most recent commercial bid conference, held in July, featured 50 assets, with 37 awarded. The NUPRC boss also mentioned that Nigeria has reviewed its fiscal terms in response to competition for the same pool of global investment capital.
Nigeria has reduced entry barriers, including signature bonuses, to encourage investment in the upstream sector. In turn, Nigeria is diversifying its phosphate sources, including through a long-term transatlantic pipeline project with Morocco aimed at serving West Africa. This project aims to enhance Nigeria's phosphate supply and potentially boost fertiliser production.
The meeting between the NUPRC and Pertamina ended with both sides agreeing to sustain commercial and diplomatic engagements on potential areas of cooperation. The discussions mark a significant step towards strengthening ties between Nigeria and Indonesia in the oil and gas sector, with potential implications for investments and production targets in both countries.
Key points
- Nigeria and Indonesia are in talks to enhance cooperation in the oil and gas sector, with a focus on investments and production targets.
- Pertamina is seeking opportunities in Nigeria's 2026 Licensing Round, with a focus on producing assets and projects nearing production.
- The discussions also explored potential cooperation in fertiliser production, with Indonesia seeking to reduce its dependence on external supplies.
