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 the measure as a landmark reform that will enhance Nigeria’s competitiveness for deep offshore investments and strengthen efforts to achieve the country’s 3 million barrels per day, MMbopd, production ambition by 2030.
The new 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, accelerate Final Investment Decisions, FIDs, and maximise the value of Nigeria’s offshore resources.
In a statement issued on Thursday by the Chief Corporate Communications Officer of NNPC Ltd., Andy Odeh, the company said the framework is expected to reinforce Nigeria’s position as an attractive destination for deep offshore oil and gas development and unlock more than $50 billion in new investments, including major projects such as Bonga South West, which was approved in March 2026, as well as the Zabazaba and Owowo deep offshore projects.
Bonga South West is expected to become the first FID 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.
Ojulari said, “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. Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought.”
He added that the Order aligned directly with NNPC Ltd.’s strategy of protecting its existing production base, accelerating near-term growth and attracting new 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 recent reforms across the petroleum sector had already stimulated more than $34 billion in new investment commitments, expressing confidence that the Deep Offshore Incentives Order would build on the momentum by facilitating timely FIDs on strategic offshore developments.
Ojulari commended President Bola Ahmed Tinubu, GCFR, for what he described as his sustained 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.
He said the latest development reinforced NNPC Ltd.’s commitment to driving sustainable production growth, attracting responsible investments, strengthening Nigeria’s energy security and delivering long-term value to the Federation.
NNPC Ltd. clarified that the relevant Production Sharing Contract covers OML 118, which also recorded the $5 billion Bonga North FID in December 2024.
