Deep offshore incentive order to unlock $50bn investment, boost production – Ojulari
By Abiodun Folarin
The Nigerian National Petroleum Company Limited (NNPC Ltd.), has said the Federal Government’s signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, will unlock more than $50 billion in new investments and accelerate growth in Nigeria’s oil production.
The Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, described the new fiscal framework as a landmark reform capable of strengthening Nigeria’s competitiveness in the global deep offshore oil and gas market and supporting the country’s ambition to raise production to three million barrels per day (3 MMbopd) by 2030.
According to him, the Order provides a transparent, predictable and globally competitive fiscal framework for qualifying greenfield deep offshore projects, offering investors the certainty required to commit long-term capital and take Final Investment Decisions (FIDs).
The framework is expected to facilitate the development of major offshore projects, including Bonga South West, Zabazaba and Owowo.
Bonga South West, which received approval in March 2026, is expected to become the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008.
Ojulari said the new incentive regime represents one of the most significant policy interventions in Nigeria’s upstream oil and gas 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,” he said.
“Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought.”
The NNPC chief executive said the Order was also aligned with the company’s strategy of protecting existing production, accelerating near-term growth and attracting fresh investments 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 MMbopd while creating greater value for our shareholders and the Nigerian economy,” he added.
Ojulari disclosed that reforms undertaken across Nigeria’s petroleum sector had already stimulated more than $34 billion in new investment commitments.
He expressed optimism that the Deep Offshore Incentives Order would build on the momentum by facilitating timely FIDs on strategic offshore developments.
The GCEO commended President Bola Ahmed Tinubu for his leadership and commitment to creating an enabling environment for investment and sustainable growth in the energy sector through a series of Presidential Executive Orders aimed at strengthening Nigeria’s oil and gas industry.
He said the latest development reinforced NNPC Ltd.’s commitment to sustainable production growth, attracting responsible investment, strengthening national energy security and delivering long-term value to the Federation.
