The Nigerian Upstream Petroleum Regulatory Commission has said the Federal Government’s new tax incentives for deep offshore oil and gas projects could attract up to $50 billion in investment and increase Nigeria’s crude oil and condensate production by nearly one million barrels per day within the next four to five years.
The NUPRC Executive Commissioner for Development and Production, Enorense Amadasu, disclosed this while speaking on a television programme.
He said the incentives introduced under the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Executive Order 2026 were designed to improve the profitability of offshore developments and encourage investors to move ahead with projects that have already received regulatory approval.
According to Amadasu, nine projects currently have approved Field Development Plans and are awaiting Final Investment Decisions from their operators.
One of the major projects is the $10 billion Bonga South development, which is expected to begin contributing to production in 2027.
Amadasu said the projects could collectively deliver almost one million additional barrels of crude oil and condensate per day over the next four to five years.
Nigeria currently produces about 1.7 million barrels of crude oil and condensate daily, with deep offshore fields accounting for about 24 per cent of oil production and 19 per cent of gas output.
The NUPRC official said the new fiscal framework could help remove some of the financial uncertainties that have slowed investment in deep offshore developments, which typically require huge capital outlays and several years to reach production.
He added that increased offshore activity would also create opportunities for Nigeria’s marine and logistics industries, as the country would need stronger infrastructure and specialised services to support the expected projects.
The commission also expects the investments to increase Nigeria’s petroleum reserves, create jobs, promote technology and skills transfer, and strengthen the country’s position as a regional hub for deep offshore operations.
However, the projected production increase will depend on oil companies taking Final Investment Decisions and successfully completing the approved developments.
If the projects proceed as anticipated, the new incentive regime could significantly increase Nigeria’s oil output and attract billions of dollars in new capital to the upstream petroleum sector.
