Nigeria has secured a prominent spot in the global deepwater oil industry, now ranking among the top three nations for competitive returns in deepwater projects. This significant achievement follows the country’s rise from the bottom quartile of 13 indexed nations, as reported by the Presidency.

Mrs. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, revealed the milestone during a keynote address at the Executive Session of the Energy Institute and the National Association of Petroleum Explorationists (NAPE) in Abuja. According to Verheijen, Nigeria’s deepwater oil and gas projects are now yielding competitive returns due to substantial reforms in the country’s oil and gas sector, aimed at enhancing fiscal attractiveness and business ease.

For the first time in Nigeria’s history, the country has developed a fiscal framework for deepwater gas projects, moving from having no framework at all. These reforms were driven by the current administration’s focus on resolving investment bottlenecks and unlocking real projects in the sector.

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Verheijen also highlighted the progress made on the Ubeta Non-Associated Gas project, a $500 million venture that reached its final investment decision (FID) in April 2024. This project, which taps into a field discovered in 1965, promises to generate substantial benefits for local communities and businesses.

Additionally, she outlined Nigeria’s potential to access $90 billion in financing available globally for deepwater projects, with international oil companies (IOCs) already operating in the country. Aiming to secure 20% of this funding would be sufficient to develop five major deepwater projects, unlocking 1.3 billion barrels of oil equivalent (boe).

Nigeria is also set to embark on its first greenfield deepwater development since the Egina project in 2013, further bolstering the country’s position in the global energy market. Verheijen anticipates that by 2025, momentum in energy investment will increase, solidifying President Tinubu’s energy reform agenda as a transformative force for Nigeria’s economy.

The investments are expected to generate significant economic benefits, including foreign exchange inflows that will assist in exchange rate management and macroeconomic stability. Local economies will also thrive through increased construction activity, job creation, and skill development, while technological advancements will further enhance the sector.