Nigeria’s deep offshore oil sector could attract as much as $50 billion in new investments and deliver an additional one million barrels per day of crude oil and condensate production under the Federal Government’s new tax incentive regime, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said.
The commission said the 2026 Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order would provide a more predictable investment environment for deep offshore developments and accelerate the deployment of capital into the sector.
President Bola Tinubu approved the executive order on August 11, replacing the previous system of negotiating incentives on individual projects with a broader, rules-based framework.
NUPRC Executive Commissioner, Development and Production, Enorense Amadasu, disclosed the projected impact of the reform while speaking on a programme on the Nigerian Television Authority (NTA).
Amadasu, who represented the commission’s Chief Executive Officer, Oritsemeyiwa Eyesan, said the new framework was expected to encourage international oil companies (IOCs) to take final investment decisions on projects that have already received regulatory approval.
He said the commission had approved several Field Development Plans (FDPs) worth billions of dollars, with a number of the projects now awaiting final investment decisions.
According to him, Nigeria currently produces about 1.7 million barrels per day of crude oil and condensate, while deep offshore fields account for approximately 24 per cent of total oil production and 19 per cent of gas production.
Amadasu said more than 4.6 billion barrels of crude had so far been produced from the country’s deep offshore assets, underscoring the importance of the sector to Nigeria’s energy industry.
He said the new incentive regime would provide the certainty required to unlock fresh capital and move approved projects into the development phase.
Highlighting one of the major projects, Amadasu said the $10 billion Bonga South development was expected to commence production in 2027.
“The $10bn Bonga South will come in 2027 and within the next four to five years, we are expecting almost an additional one million barrels additional per day,” he said.
He explained that the projected production growth would not depend on Bonga South alone, as several other projects with approved FDPs were expected to reach FID in the near to medium term.
The commission also expects the reform to generate benefits beyond increased crude production.
Amadasu said expansion in deep offshore operations would stimulate Nigeria’s marine economy by increasing demand for logistics, marine transportation, support services and related infrastructure.
The executive commissioner said the government’s broader objective was to make Nigeria a regional hub for deep offshore oil and gas developments.
He listed increased reserves, technology transfer, skills development and job creation among the potential benefits of the policy.
Amadasu maintained that the executive order would help create a stable framework for attracting fresh investments while enabling Nigeria to maximise its deep offshore resources.
The NUPRC expects the implementation of the reform, combined with the pipeline of approved development plans, to accelerate investment decisions and support a sustained increase in national oil and condensate production.
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