KEY POINTS
• Indonesia’s Pertamina is exploring investment opportunities in Nigeria’s upstream oil and gas sector.
• The company is considering producing assets, projects nearing production and opportunities before Final Investment Decision.
• NUPRC says Nigeria’s 2026 Licensing Round is part of efforts to raise production to three million barrels per day by 2030.
MAIN STORY
Indonesia’s state owned oil company, Pertamina, has expressed interest in Nigeria’s 2026 Licensing Round as the two countries explore deeper cooperation in the petroleum sector.
The development followed a meeting between the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, Indonesia’s Vice Minister of Foreign Affairs, Arif Havas Oegroseno, and Pertamina’s Vice President, Upstream Business Development, Toriq Abdat.
NUPRC Head of Corporate Communications and Media, Eniola Akinkuotu, disclosed this in a statement on Sunday.
Pertamina is seeking to expand its international operations as Indonesia looks for ways to raise domestic oil production. The company is currently producing about 600,000 barrels per day in Indonesia and is exploring opportunities in other markets, including Malaysia, Iraq and Nigeria.
Abdat said the company had been directed to increase its international footprint and was assessing opportunities across different stages of petroleum development.
He said Pertamina was interested in producing assets, projects close to production and ventures that had not yet reached Final Investment Decision.
The company is also open to participating through competitive bidding or bilateral arrangements with governments, according to Abdat.
“We would like to be in projects with governments, producing assets, near production or before FID.
“Now we are looking at how we can help you reach the three million, and also help us provide more energy for our own consumption,” he said.
Pertamina’s interest extends beyond crude oil and natural gas. Abdat said the company was also examining opportunities in fertiliser production, linking the sector to Indonesia’s efforts to strengthen food security and reduce dependence on supplies from the Middle East.
He noted that phosphate and other inputs required for fertiliser production were important to the broader food security objective.
Nigeria and Indonesia are pursuing similar goals around energy security, resource development and attracting investment into their petroleum sectors. Nigeria currently produces about 1.6 million to 1.7 million barrels per day and has set a target of three million barrels per day by 2030.
Eyesan said the production target was ambitious but achievable through several strategies, including the 2026 Licensing Round.
“We have very aggressive targets, three million barrels per day by 2030, and today we are at 1.6, 1.7.
“We are committed to the objective and the licensing round is one of the strategies we are utilising,” she said.
She said licensing rounds had become a regular part of Nigeria’s upstream investment process following their institutionalisation under the Petroleum Industry Act (PIA) 2021.
According to Eyesan, the most recent commercial bid conference held in July featured 50 assets, of which 37 were awarded.
She added that Nigeria had adjusted its fiscal terms to compete for global investment capital, including reducing entry barriers such as signature bonuses.
The discussions between the two countries also covered broader resource cooperation, with Nigeria diversifying its phosphate sources through a long term transatlantic pipeline project with Morocco intended to serve West Africa.
The engagement ended with both sides agreeing to continue commercial and diplomatic discussions on potential areas of cooperation.
THE ISSUES
- Pertamina’s interest introduces another potential source of international capital into Nigeria’s upstream sector, particularly as the country seeks to raise crude production and attract investors into available assets.
- The company’s preference for producing assets, near production projects and opportunities before FID gives the proposed engagement a broad scope across different stages of upstream development.
- Nigeria’s decision to reduce entry barriers and review fiscal terms reflects the competition among oil producing countries for the same pool of international investment capital.
WHAT’S BEING SAID
“We would like to be in projects with governments, producing assets, near production or before FID.” – Toriq Abdat, Pertamina
“Now we are looking at how we can help you reach the three million, and also help us provide more energy for our own consumption.” – Toriq Abdat, Pertamina
“We are committed to the objective and the licensing round is one of the strategies we are utilising.” – Oritsemeyiwa Eyesan, NUPRC
WHAT’S NEXT
Nigeria and Indonesia are expected to sustain commercial and diplomatic engagements on possible areas of cooperation, while Pertamina continues to assess opportunities in Nigeria’s upstream sector.
BOTTOM LINE
Pertamina is considering Nigeria’s 2026 Licensing Round as part of its international expansion strategy. The NUPRC sees the licensing round as one of the measures supporting Nigeria’s target of raising oil production to three million barrels per day by 2030.
