Indonesia's state owned energy company Pertamina is considering investments in Nigeria's upstream oil and gas sector as it explores opportunities in the country's 2026 petroleum licensing round.

The investment interest emerged following discussions involving the Nigerian Upstream Petroleum Regulatory Commission, Indonesia's Vice Minister of Foreign Affairs Arif Havas Oegroseno and senior Pertamina executives.

Pertamina is considering producing oil and gas assets as well as projects approaching production or final investment decisions as the company expands its operations beyond Indonesia.

The discussions could deepen energy cooperation between Nigeria and Indonesia as both countries seek to increase oil production and strengthen energy security.

PERTAMINA LOOKING FOR NIGERIAN ASSETS

Pertamina Vice President for Upstream Business Development Toriq Abdat said the company has been given a mandate to expand its international operations.

Pertamina currently produces approximately 600,000 barrels per day in Indonesia but is looking overseas for additional resources as it seeks to meet the country's growing energy requirements.

Abdat said the company is interested in Nigerian assets capable of reaching production relatively quickly.

Its areas of interest include producing assets, projects close to production and developments approaching final investment decisions.

Pertamina is also prepared to consider opportunities through competitive bidding as well as bilateral arrangements.

INTEREST IN 2026 LICENSING ROUND

The discussions come as Nigeria prepares its 2026 upstream petroleum licensing round.

NUPRC had previously announced that the exercise was expected to commence by the third quarter of 2026 after receiving ministerial approval under the Petroleum Industry Act.

Commission Chief Executive Oritsemeyiwa Eyesan said licensing rounds are becoming a recurring part of Nigeria's strategy for attracting investment into its upstream petroleum sector.

Pertamina's interest could introduce another major international state owned energy company into the competition for Nigerian oil and gas assets.

However, no investment agreement or asset acquisition has yet been announced.

NIGERIA TARGETS 3 MILLION BARRELS PER DAY

Nigeria is seeking to increase crude oil production to 3 million barrels per day by 2030.

Eyesan said current production stands at approximately 1.6 million to 1.7 million barrels per day.

The government hopes licensing rounds, investment reforms and development of existing assets will help close that gap.

Nigeria has also adjusted fiscal terms and reduced some entry barriers in an attempt to compete more effectively for international energy investment.

The country's previous licensing exercise attracted bids across established oil producing areas and frontier basins.

PERTAMINA EXPANDS INTERNATIONALLY

Pertamina's interest in Nigeria forms part of a wider international expansion strategy.

Abdat said declining domestic production and exploration results that have produced more gas than oil have encouraged the company to look overseas.

Pertamina has already pursued opportunities in countries including Malaysia and Iraq as well as other parts of the Middle East.

Nigeria could become another important part of that strategy.

The company is particularly interested in projects that could contribute additional production while helping Indonesia secure energy supplies for domestic consumption.

NIGERIA AND INDONESIA SEEK ENERGY SECURITY

Energy security was a central issue during discussions between Nigerian and Indonesian officials.

Both countries are seeking substantially higher production.

Nigeria wants to reach 3 million barrels per day by 2030, while Indonesia is pursuing its own ambitious production targets and acknowledges that domestic fields alone may not be sufficient.

That creates potential for cooperation in which Indonesian capital supports Nigerian production while Pertamina gains access to additional international energy resources.

TALKS EXTEND BEYOND OIL

Discussions also covered opportunities beyond crude oil production.

The Indonesian delegation highlighted fertiliser production and food security as potential areas for cooperation because of their connections to oil, gas and related raw materials.

Pertamina is developing fertiliser capacity as Indonesia attempts to reduce its dependence on supplies from other regions.

Nigeria and Indonesia agreed to continue pursuing both commercial discussions and diplomatic engagement as they explore potential investments.

NO INVESTMENT DEAL SIGNED YET

Pertamina's interest represents an early stage in the investment process.

The company has not yet been announced as the winner of a Nigerian petroleum asset, and no final investment agreement arising from the latest discussions has been disclosed.

The next significant development will be whether Pertamina formally participates in the licensing process or reaches an agreement involving an existing Nigerian upstream asset.

For Nigeria, attracting a company of Pertamina's scale would support efforts to bring additional international capital into the petroleum industry and increase production.

For Indonesia, Nigerian assets could provide another source of energy as Pertamina expands its upstream operations internationally.