FLORENCE, Italy – At a recent meeting with international oil companies (IOCs) in Florence, Italy, the Nigerian government reiterated its commitment to creating a profitable environment for them, while urging them to respond with concrete investment decisions.
The meeting, organized by IOCs operating in Nigeria, brought together industry stakeholders to discuss challenges and expectations within the country’s oil sector.
The Nigerian government representative emphasized that the government has implemented investment-friendly fiscal policies and now expects IOCs to announce Final Investment Decisions (FIDs) to boost production and sustainability.
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Concerns were raised by IOCs regarding Engineering, Procurement, and Construction (EPC) contractors. The government acknowledged these concerns, noting that EPCs are unlikely to engage without strong commitments from industry players.
The importance of domestic crude supply for national energy security was also highlighted. The government stressed that increasing production is vital to meeting both domestic needs and external commitments.
The Nigerian government encouraged collaborative initiatives, such as sharing resources for contiguous assets and releasing underutilized assets to operators willing to invest in production. The upcoming implementation of the “drill or drop” provisions of the Petroleum Industry Act (PIA), which aims to bring fallow wells into production, was also mentioned.
The meeting underscores Nigeria’s efforts to revitalize its oil sector, which has faced challenges in recent years due to factors such as declining production, regulatory uncertainty, and security concerns. The government’s proactive approach and the call for increased investment from IOCs signal a renewed focus on enhancing the sector’s contributions to both domestic energy needs and regional expansion across Sub-Saharan Africa.
