Nigeria has been ranked among the top three countries for deepwater oil projects.

In a significant development for Nigeria’s oil sector, President Bola Tinubu’s administration has announced that the country’s deepwater oil projects are now yielding competitive returns. This advancement has propelled Nigeria from the lowest quartile to a position among the top three countries in a recent index of 13 nations.

During a keynote address at an Executive Session organized by the Energy Institute and the National Association of Petroleum Explorationists (NAPE), Olu Verheijen, the Special Adviser to the President on Energy, emphasized the historical significance of this achievement. For the first time, Nigeria has established a fiscal framework for deepwater gas, a critical step in enhancing the sector’s attractiveness to investors.

Verheijen attributed these advancements to comprehensive reforms initiated by President Tinubu’s government, aimed at eliminating existing bottlenecks and facilitating smoother business operations. She highlighted the recent Final Investment Decision (FID) on the Ubeta Non-Associated Gas project, a half-billion-dollar initiative that has finally unlocked potential dating back to its discovery in 1965.

Furthermore, Verheijen noted that Nigeria is poised to access a substantial $90 billion in financing available for global deepwater projects from International Oil Companies (IOCs) already operating in the country. Securing just 20% of this financing could enable the development of five major deepwater projects, unlocking approximately 1.3 billion barrels of oil equivalent.

As Nigeria approaches 2025, the momentum for investment is expected to accelerate, showcasing the transformative nature of President Tinubu’s energy reform agenda. The anticipated influx of foreign exchange will bolster macroeconomic stability, stimulate local economies, and facilitate skill-building and technology transfer.

Verheijen underscored the importance of collaboration with industry stakeholders, stating that the government seeks to attract financing while also valuing the insights and feedback of its partners. The energy sector, she asserted, is vital for creating high-paying jobs, fostering industrialization, and driving innovation—key elements for Nigeria’s long-term prosperity and that of the African continent.

In conclusion, these developments signal a promising future for Nigeria’s oil and gas industry, with the potential to significantly impact the nation’s economy and position within the global energy landscape.