The Great Oil Return: Nigeria Rolls Out Red Carpet as Fled Energy Giants Eye Comeback Bonanza
Nigeria is strengthening its position as a top global investment destination, welcoming international partners back to its oil and gas industry with competitive incentives following recent policy reforms.
Minister of State for Petroleum Resources Senator Heineken Lokpobiri emphasized President Bola Tinubu’s commitment to ensuring oil companies that previously exited the country are encouraged to return. The minister made these remarks while receiving a delegation from Vaalco Energy, an American independent oil and gas exploration company.
Recent incentives center around the Petroleum Industry Act of 2021, which overhauled the fiscal and regulatory framework with more competitive royalty and tax regimes, especially for deep offshore and frontier acreages. The government has also promoted gas development through tax holidays, zero customs duties on equipment, and capital allowances.
Vaalco Energy has expressed interest in re-entering Nigeria through acquiring Svenska’s PSC interest in Oil Mining Lease 145. Managing Director Pieter Van der Groen emphasized the company’s commitment to development rather than asset speculation, noting their access to funding as a New York Stock Exchange-listed company.
Source: ThisDay
