Offshore Tax Incentives Could Boost Oil Output – NNPC

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has said the government’s newly signed Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, would strengthen the nation’s pathway towards achieving its 3 million barrels of oil per day production target by 2030.

Group Chief Executive Officer Bashir Bayo Ojulari welcomed the reform in a statement, describing it as a landmark policy that enhances Nigeria’s competitiveness for deep offshore investment.

“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.

“Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought.”

He said the order establishes a transparent, predictable, and globally competitive fiscal framework for qualifying greenfield deep-offshore developments, providing the certainty required to unlock long-term capital and accelerate final investment decisions.

“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,” Ojulari said.

“It strengthens our confidence in achieving our strategic production ambition of 3 MMbopd while creating greater value for our shareholders and the Nigerian economy.”

The framework is expected to unlock over $50 billion in new investments, including major projects starting with Bonga South-West, approved in March 2026, and the Zabazaba and Owowo deep offshore projects.

Bonga South West is expected to be the first Final Investment Decision on a Nigeria deepwater Production Sharing Contract asset since 2008.

Ojulari said recent reforms across the petroleum sector have already stimulated more than $34 billion in new investment commitments.

The Deep Offshore Incentives Order is expected to build on that momentum.

He thanked President Bola Ahmed Tinubu for what he described as “relentless leadership and unwavering commitment to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector.”