By: OrePulse

Nigeria's Upstream Petroleum Regulatory Commission (NUPRC) has begun discussions with Indonesian state energy company Pertamina about potential investment in the West African nation's oil sector, with the Indonesian firm expressing interest in Nigeria's 2026 licensing round.

The talks took place during a meeting between NUPRC Chief Executive Oritsemeyiwa Eyesan, Indonesia's Vice Minister of Foreign Affairs Arif Havas Oegroseno, and Toriq Abdat, Pertamina's vice president for upstream business development. Eniola Akinkuotu, NUPRC's head of corporate communications and media, disclosed the meeting in a statement issued Sunday.

Officials from both countries pointed to overlapping priorities — energy security, resource development and sector investment — as Nigeria and Indonesia each push to raise domestic oil output. Nigeria is targeting three million barrels per day by 2030, up from its current output of roughly 1.6 million to 1.7 million barrels per day. Indonesia, for its part, produces about 600,000 barrels per day and is likewise looking to grow production.

Abdat said Pertamina has been directed to broaden its footprint outside Indonesia and is evaluating opportunities not only in Nigeria but also in Malaysia and Iraq. "In Indonesia, we are producing only around 600,000 barrels. We are working on exploration towards deepwater, but we found more gas than oil," he said. "That is why we go outside Indonesia, Malaysia, then the Middle East, Iraq and Nigeria."

According to Abdat, the company is scouting for assets already in production, projects nearing production, or ventures still ahead of a final investment decision. It would consider entering Nigeria either through competitive bidding or through direct arrangements with the government. "We would like to be in projects with governments, producing assets, near production or before FID," he said. "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."

Pertamina's interest extends past crude oil and gas to fertilizer production, Abdat said, noting the company is building its own fertilizer plant to cut Indonesia's reliance on supplies from the Middle East, which ongoing global conflicts have disrupted. He tied that ambition to broader food security, citing the role of phosphate and related raw materials in fertilizer manufacturing.

Eyesan, for her part, described Nigeria's production goal as ambitious and pointed to the 2026 licensing round as a central tool for reaching it. "We have very aggressive targets, three million barrels per day by 2030, and today we are at 1.6, 1.7," she said. "We are committed to the objective and the licensing round is one of the strategies we are utilizing."

Eyesan added that licensing rounds are now a routine part of Nigeria's upstream sector rather than a rare occurrence, a shift she attributed to their formal codification under the Petroleum Industry Act of 2021. She noted that the most recent bid round, held in July, offered fifty assets, of which thirty-seven were awarded.

To remain competitive for global investment capital, Eyesan said, Nigeria has revised its fiscal framework and lowered barriers to entry — including cutting signature bonuses — to attract upstream investors.

On the fertilizer front, Nigeria is also working to diversify its own phosphate supply, including through a long-planned transatlantic pipeline venture with Morocco intended to serve markets across West Africa.

The meeting concluded with both governments agreeing to keep engaging on commercial and diplomatic fronts around areas of potential collaboration.