The Nigerian National Petroleum Company Limited (NNPC Ltd.) has expressed readiness to implement amendments to the Production Sharing Contract (PSC) framework following the Federal Government’s approval of a new incentive regime for deep offshore oil and gas projects.
NNPC Group Chief Executive Officer, Bayo Ojulari, disclosed this on Wednesday after President Bola Tinubu signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
Ojulari said the new framework would replace years of project-by-project negotiations with a transparent and predictable regime designed to provide greater certainty for investors in Nigeria’s deep offshore petroleum sector.
According to him, the policy has the potential to unlock up to $50 billion in new investment, with the Bonga South West project expected to be the first major beneficiary.
“President Bola Tinubu has signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, replacing years of case-by-case negotiation with one clear, transparent framework,” Ojulari said.
He stated that NNPC Ltd., as the Federal Government’s nominated counterparty, was prepared to implement the necessary amendments to the PSC framework to give effect to the new regime.
“Up to $50bn in new investment. Bonga South West as the first beneficiary. And NNPC Limited standing as the Federation’s nominated counterparty, ready to implement the PSC amendments to bring it to life,” he said.
Policy targets higher oil production
Ojulari said the new investment framework was expected to stimulate economic activity, create jobs and deepen the participation of Nigerian businesses in the offshore oil and gas value chain.
He added that increased investment in deep offshore projects would support Nigeria’s ambition to raise crude oil production to three million barrels per day by 2030.
“This means more jobs for Nigerians, deeper local supply chains, faster progress toward our 3 million barrels per day production ambition by 2030,” the NNPC chief executive said.
He noted that greater fiscal and regulatory certainty would strengthen Nigeria’s ability to compete for international capital as oil-producing countries seek investment for increasingly complex and capital-intensive offshore developments.
“As always, certainty attracts capital. Nigeria is showing the world it’s ready,” Ojulari added.
The development forms part of the Federal Government’s broader efforts to revive investment in the upstream oil and gas sector by improving the fiscal and regulatory environment for major petroleum projects.
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Deep offshore developments typically require substantial upfront capital, specialised technology and lengthy development periods, making the stability and predictability of fiscal terms a key consideration for investors.
The Bonga South West project, being developed by Shell and its partners, is among the major deepwater projects expected to contribute to Nigeria’s future crude oil production.
The project is also expected to generate additional spending across the domestic oilfield services and supply chain, creating opportunities for Nigerian contractors and service providers.
The Federal Government is banking on increased investment in deepwater and other technically challenging assets to help raise national crude production and strengthen government revenues and foreign exchange earnings.
