Ojulari hails Tinubu, says deep offshore order will boost fiscal certainty, attract new investments
Bashir Ojulari, Group Chief Executive Officer of Nigerian National Petroleum Company (NNPC) Limited has commended president Tinubu’s signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, describing it as a landmark reform that significantly enhances Nigeria’s competitiveness for deep offshore investment and strengthens the nation’s pathway towards achieving its 3 million barrels of oil per day (MMbopd) production ambition by 2030.
According Ojulari, the new Order establishes a transparent, predictable and globally competitive fiscal framework for qualifying greenfield deep offshore developments.
He said that the order provides the certainty required to unlock long-term capital, accelerate Final Investment Decisions (FIDs), and maximise value from Nigeria’s offshore resources.
“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.
“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 said.
The GCEO noted that recent reforms across the petroleum sector have already stimulated more than US$34 billion in new investment commitments adding that the deep offshore incentives order is expected to build on that momentum by enabling timely FIDs on strategic offshore developments.
He applauded the president’s leadership and unwavering commitment to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector through several Presidential Executive Orders which have strengthened the nation’s oil and gas sector.
“This milestone reinforces NNPC Limited’s commitment to driving sustainable production growth, attracting responsible investment, strengthening Nigeria’s energy security and delivering long-term value to the Federation,” he added.
Bonga South West is expected to be the first FID on a Nigeria deepwater Production Sharing Contract asset since 2008.
The new fiscal incentive regime for deep offshore oil and gas projects, signed on August 6, 2026 and published in the Federal Government Official Gazette on August 10, offer production tax credits of up to $11.50 per barrel for qualifying oil developments.
The framework, which reinforces Nigeria’s position as one of the world’s attractive destinations for deep offshore oil and gas development, is expected to unlock over $50 billion in new investments, including major projects starting with Bonga South-West which was approved in March 2026, and the Zabazaba and Owowo Deep Offshore projects.
The Order states that the Standard PTC is intended to “incentivise investments in the deep offshore developments” and to “exclusively benefit parties to a production sharing contract who are directly providing the funding for developments that lead to production.”
For crude oil projects with producible reserves not exceeding 400 million barrels of crude oil equivalent, the government will provide a production tax credit of $3 per barrel or 20 per cent of the fiscal oil price, whichever is lower, up to cumulative production of 150 million barrels.
The Order further provides an additional $1 per barrel Standard PTC for future leases from commencement of production up to the applicable cumulative production threshold.
However, where the fiscal oil price for a qualifying project falls below $50 per barrel in a particular month, the tax credit incentives for that month will apply at 50 percent of the applicable rate.
