The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that the Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026 signed by President Bola Tinubu could unlock about $50 billion investments and increase the country’s crude oil and condensate production by an additional one million barrels per day (bpd).
This was revealed by the Commission Chief Executive of NUPRC, Mrs. Oritsemeyiwa Eyesan, on Tuesday during Tuesday Live on NTA.
“The executive order has created a transparent and rules-based investment framework that would support new deep offshore developments and encourage investors to take Final Investment Decisions (FIDs),” said Enorense Amadasu, represented by the Executive Commissioner, Development and Production, NUPRC.
She said that Nigeria currently produces about 1.7 million bpd of crude oil and condensate, while deep offshore operations account for about 24 per cent of total oil production and 19 per cent of gas production.
The country has produced more than 4.6 billion barrels to date from deep offshore assets, or about 5,000 cargoes, she said.
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The new incentives would help accelerate projects whose Field Development Plans (FDPs) had already been approved by the NUPRC, Eyesan said.
The NUPRC boss said the $10 billion Bonga South project, which is expected to come on stream in 2027, will be one of the projects that would drive the expected production increase.
“So where are these volumes going to be coming from? Nine of these projects have approved FDPs, so the next step is expected to be the FID in the near to midterm.
“We are expecting almost another one million barrels additional per day in the next four to five years and the $10bn Bonga South will be in 2027,” he said.
“There will also be wider economic benefits from the executive order especially for the marine economy as the increase in deep offshore activities will require expansion of Nigeria’s logistics and marine infrastructure,” Eyesan said.
She further identified increased reserves, transfer of technology and skills, and job creation as some of the expected benefits of the policy.
“The executive order is expected to provide greater certainty for investors and support the development of deep offshore oil and gas projects that require substantial capital and long-term investment,” she said.
