Deep Offshore Tax Incentive Will Drive Oil Production to 3m BPD — Ojulari
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has welcomed the Federal Government’s signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, describing it as a landmark reform capable of accelerating investment and production growth in Nigeria’s deep offshore sector.
NNPC Ltd. said the new Order provides a transparent, predictable and globally competitive fiscal framework for qualifying greenfield deep offshore developments, creating the certainty needed to unlock long-term capital and accelerate Final Investment Decisions (FIDs).
According to the company, the incentive framework is expected to unlock more than $50 billion in new investments and advance major deep offshore projects, including Bonga South-West, Zabazaba and Owowo.
Bonga South-West, which was approved in March 2026, is expected to become the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008.
Speaking on the development, the Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, described the Order as one of the most significant policy interventions in Nigeria’s upstream sector in recent years.
“This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development,” Ojulari said.
He noted that fiscal certainty remains a critical driver of investment decisions, adding that the new framework provides the clarity the industry has long sought.
Ojulari said the Order aligns with NNPC Ltd.’s strategy of protecting existing production, accelerating near-term growth and attracting fresh investment into high-value assets.
“For NNPC Ltd., the Order aligns directly with our strategy of protecting our existing production base, accelerating near-term growth, and attracting new investment into high-value assets. It strengthens our confidence in achieving our strategic production ambition of 3 million barrels per day while creating greater value for our shareholders and the Nigerian economy,” he said.
The GCEO disclosed that recent reforms across the petroleum sector had already stimulated more than $34 billion in new investment commitments.
He said the Deep Offshore Incentives Order would build on that momentum by facilitating timely FIDs on strategic offshore developments.
Ojulari commended President Bola Ahmed Tinubu for his leadership and commitment to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector through a series of Presidential Executive Orders aimed at strengthening the oil and gas industry.
The NNPC Ltd. said the latest policy development reinforces its commitment to sustainable production growth, attracting responsible investment, strengthening Nigeria’s energy security and delivering long-term value to the Federation.
