*Lokpobiri: FG wooing global oil firms with new incentives 

*American firm eyes investment in OML 145

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos 

The Nigerian National Petroleum Company Limited (NNPC) and some upstream gas suppliers yesterday signed long-term Gas Supply Agreements (GSAs) with the Nigeria Liquefied Natural Gas Limited (NLNG) for the delivery of 1.29 billion standard cubic feet per day (bscf/d) of feed gas.
This emerged as the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said President Bola Tinubu remains committed to ensuring that oil companies that once exited the country are compelled to return, given the recent incentives provided in the sector by the government.
The 20-year agreements, with extension options between the NNPC and GSAs, were signed in Abuja, by the NLNG and Amni International Petroleum Development Company Limited; Sunlink Energies and Resources Limited; First Exploration & Petroleum Development Company Limited; SNEPCo; NNPC Gas Marketing Limited; NNPC E&P Limited; Shell Nigeria Gas Solutions Limited; Oando Group; and Aradel Holdings.
The agreements, a statement from the NNPC said, aims at bridging the prolonged shortfall in upstream gas availability, and marks a major boost for Nigeria’s energy transition agenda and the federal government’s gas reforms aimed at strengthening the nation’s economic prosperity and energy security.
Speaking at the signing ceremony, the Group Chief Executive Officer of NNPC,  Bayo Ojulari, commended NLNG’s shareholders and the government for their long-term commitment to value delivery despite the challenges faced over the years. 
He described the agreements as a giant step towards value creation and sustainable gas supply.
“These GSAs have opened up opportunities for the growth of our industry both for local and international development. They’re hinged on collaboration, synergies and opportunities. We need to leverage economies of scale, share risk and opportunities for us to attain Mr. President’s Decade of Gas vision,” he said.
Ojulari lauded the enabling environment and private sector support fostered by Tinubu.
“It is important to commend the President’s tremendous effort that has enabled the business through the issuance of Executive Orders targeted at gas developments and ease of doing business,” he added.
The GCEO reaffirmed NNPC’s readiness to accelerate the realisation of the Presidential Executive Orders for the industry, pledging to work with partners to unlock opportunities for collective prosperity, in line with the national gas development targets for incremental production.
In his remarks, NLNG Managing Director, Philip Mshelbila, who hailed the GSAs as a game-changer for Nigeria’s gas industry, said they will enhance local gas production capacity, improve supply reliability, and advance the nation’s energy security, industrialisation aspirations, and economic growth.
“We could not have achieved this sooner without the deliberate and concerted efforts of our shareholders and stakeholders in the energy industry in Nigeria. These agreements are a turning point in NLNG’s journey, restoring reliability of supply and ensuring we remain firmly on the path of growth and expansion,” Mshelbila noted.

According to him, the new GSAs reinforce Nigeria’s role in the global energy market while strengthening feed gas supply to the Bonny Island plant and supporting the company’s expansion drive.

The Nigeria LNG Limited (NLNG) is an incorporated joint venture (IJV), with NNPC Ltd holding 49 per cent, Shell Gas 25.6 per cent, TotalEnergies 15 per cent, and Eni International 10.4 per cent.

The third-party gas suppliers, a separate statement from NLNG said, is a strategic move to strengthen feedgas supply to its existing trains on Bonny Island and support the company’s expansion drive.

It said the new GSAs represent a significant boost to feedgas availability, enhancing NLNG’s capacity to meet its commercial commitments while laying the groundwork for expansion. 

“This development is aligned with the Federal Government’s Decade of Gas initiative, which places natural gas at the centre of Nigeria’s industrialisation and energy transition agenda,” it added.

Meanwhile, Lokpobiri, has said Tinubu is ensuring that oil companies which once exited the country are compelled to return, given recent incentives provided in the sector by the government.

To this end, the minister noted that Nigeria is strengthening its position as a top global investment destination, welcoming international partners back to its oil and gas industry with competitive incentives and a renewed commitment to collaboration.

A statement in Abuja yesterday by the minister’s Special Adviser on Media and Communication, Nneamaka Okafor, said Lokpobiri made the remarks while receiving a delegation from Vaalco Energy, an American independent oil and gas exploration and development company.

In recent years, Nigeria has introduced a range of incentives in the oil sector aimed at attracting investment, boosting production, and stabilising revenues. Central to this is the Petroleum Industry Act (PIA) of 2021, which overhauled the fiscal and regulatory framework. 

The law provides for more competitive royalty and tax regimes, especially for deep offshore and frontier acreages, where exploration costs are high as well as ensure that investors are offered production allowances, reduced hydrocarbon tax rates, and flexible royalty structures tied to price and terrain.

Beyond fiscal reforms, the government has also promoted gas development through incentives such as tax holidays, zero customs duties on equipment, and capital allowances for companies investing in domestic gas supply and infrastructure. 

According to the statement, the American firm has also already expressed interest in re-entering Nigeria through the acquisition of Svenska’s PSC interest in Oil Mining Lease (OML) 145.

“The Government of President Bola Ahmed Tinubu is particularly interested in creating a better environment for companies that were once here but left for various reasons to return. We are prepared to offer incentives comparable to the best available globally.

“It is gratifying for us as a nation when those who have worked here become ambassadors, speaking of how friendly and conducive Nigeria is for business. We are glad to welcome you back,” Lokpobiri, who commended Vaalco’s renewed interest in Nigeria, was quoted as saying.

Lokpobiri assured that Nigeria’s oil sector policies now provide clarity, fiscal stability, and investor-friendly frameworks that encourage long-term partnerships.

 “Your renewed presence will help us ramp up production and achieve our national energy objectives. Together, we can build a future of shared growth and prosperity,” he stressed.

In his remarks, Vaalco Energy’s Managing Director, Pieter Van der Groen, said the company still sees Nigeria as a key investment hub, explaining that as a listed company in the US, the firm already has access to funding.

“We are here to seek regulatory guidance for acquiring Svenska’s interest in OML 145, but more importantly, to return to Nigeria and invest in a stronger way. As a New York Stock Exchange-listed company, we have access to funding to develop the assets we acquire. We are not here to sit on them; we are here to produce,” the MD stated

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