Deep offshore incentives to unlock $50bn investment, boost oil output — NNPC
Kola Oyelere Kano
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 accelerate investment and production growth in Nigeria’s oil and gas sector.
The company described the new order as a landmark reform that would strengthen Nigeria’s competitiveness for deep offshore investments and support the country’s ambition to increase crude oil production to three million barrels per day (MMbopd) by 2030.
In a statement issued on Thursday by its Chief Corporate Communications Officer, Andy Odeh, NNPC Ltd. said the order establishes a transparent, predictable and globally competitive fiscal framework for qualifying greenfield deep offshore projects.
According to the company, the framework is expected to provide investors with the certainty needed to unlock long-term capital, accelerate Final Investment Decisions (FIDs) and maximise value from Nigeria’s offshore resources..
The order is projected to unlock more than $50 billion in new investments, including major projects such as Bonga South-West, Zabazaba and Owowo Deep Offshore projects.
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.
Commenting on the development, NNPC Ltd. Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, described the order as one of the most significant policy interventions in Nigeria’s upstream sector in recent years.
Ojulari said the reform sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development.
“Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought,” he said.
He added that the new order aligns with NNPC Ltd.’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,” Ojulari said.
The GCEO noted that reforms introduced 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 the momentum by enabling timely FIDs on strategic offshore developments.
Ojulari also 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.
He said the various Presidential Executive Orders had strengthened the nation’s oil and gas industry and created a more conducive environment for investment.
NNPC Ltd. said the latest development reinforces its commitment to sustainable production growth, responsible investment, energy security and the delivery of long-term value to the Nigerian economy.