The Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026 recently signed by President Bola Tinubu has the potential not only to unlock $50bn in investments but can also create an additional one million barrels per day of crude oil and condensate from deep offshore fields.
The Executive Commissioner, Development and Production of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engineer Enorense Amadasu, who represented the Commission Chief Executive, said this on Tuesday Live on NTA hosted by Cyril Stober.
The executive commissioner explained that the reform establishes a transparent, rules-based investment framework capable of supporting the next generation of deep offshore developments.
Amadasu noted that presently, Nigeria produces about 1.7mbpd of crude oil and condensate but deep offshore accounts for just about 24% of total oil production and19% of gas.
“We are on the right path all thanks to Mr. President. It will be a huge leap. As of today, we have mined over 4.6 billion barrels from deep offshore assets. In cargo terms that is about 5,000 tankers,” he said, adding that this new framework now creates greater opportunities in the deep offshore.
Amadasu noted that with Field Development Plans (FDPs) running into billions of dollars already approved by the NUPRC, the executive order will encourage IOCs to make quicker Final Investment Decisions (FIDs).
“So, where will these volumes be coming from? Nine of these projects have approved FDPs so the next step expected is the FID in the near to midterm. The $10bn Bonga South will come in 2027 and within the next four to five years, we are expecting almost an additional onemillion barrels additional per day,” he stated.
According to the executive commissioner, the executive order also presents an opportunity for other sectors like the marine economy which will need to expand Nigeria’s logistics/marine base so the country can sustain the volume of deep offshore projects being expected.
“It aims to make Nigeria the regional hub for deep offshore projects,” Amadasu said.
Other benefits of the executive order as explained by Engineer Amadasu include: growth in reserves, technological/skills transfer and new jobs.
Eniola Akinkuotu
Head, Media and Corporate Communications