The Nigerian National Petroleum Company Limited (NNPC) has declared that the Federal Government’s newly signed Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order 2026 will serve as a catalyst for achieving Nigeria’s ambitious production target of 3 million barrels of oil per day by 2030.
The landmark reform, officially titled the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, establishes what the national oil company describes as a “transparent, predictable and globally competitive fiscal framework” for qualifying greenfield deep offshore developments.
NNPC Group Chief Executive Officer, Engr. Bayo Ojulari, hailed the Federal Government’s policy intervention as one of the most significant for the upstream sector in recent years, emphasising its potential to unlock over $50 billion in new investments.
“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,” Ojulari said in a statement released Thursday, August 13, signed by NNPC spokesperson, Andy Odeh.
“Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought.”
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The order is expected to accelerate Final Investment Decisions (FIDs) on major offshore projects, beginning with Bonga South-West, which received approval in March 2026, followed by the Zabazaba and Owowo Deep Offshore projects. Bonga South-West is projected to become the first FID on a Nigerian deepwater Production Sharing Contract asset since 2008.
For NNPC, the GCEO noted that the framework aligns directly with the company’s strategy of protecting its 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,” Ojulari added.
The GCEO highlighted that the recent reforms across the petroleum sector have already stimulated more than $34 billion in new investment commitments, with the Deep Offshore Incentives Order expected to build on that momentum.
Ojulari expressed gratitude to President Bola Ahmed Tinubu for what he described as relentless leadership and unwavering commitment to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector through several Presidential Executive Orders.
NNPC maintained that the milestone reinforces the company’s commitment to driving sustainable production growth, attracting responsible investment, strengthening Nigeria’s energy security and delivering long-term value to the Federation.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X