NUPRC: Deep offshore tax order to unlock $50bn investment, add 1m bpd to production
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says the deep offshore oil and gas project incentives (tax remission) executive order 2026 could unlock $50 billion in investments and increase crude oil and condensate production from deep offshore fields by an additional one million barrels per day (bpd).
On August 11, President Bola Tinubu approved the reform which replaces project-by-project negotiations with a transparent investment framework designed to unlock up to $50 billion in deep offshore investment.
According to a statement on Wednesday, Enorense Amadasu, NUPRC executive commissioner, development and production, spoke during a television programme on NTA.
Amadasu represented Oritsemeyiwa Eyesan, chief executive officer (CEO) of NUPRC, on the programme.
The executive commissioner said the executive order establishes a transparent, rules-based investment framework capable of supporting the next generation of deep offshore developments.
He said Nigeria currently produces about 1.7 million barrels per day (mbpd) of crude oil and condensate, while deep offshore operations account for about 24 percent of total oil production and 19 percent of gas production.
“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,” Amadasu said.
He added that the new framework would create greater opportunities for investment in the deep offshore sector.
Amadasu said the NUPRC had already approved several field development plans (FDPs) worth billions of dollars, adding that the executive order would encourage international oil companies (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,” he said.
“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.”
Amadasu said the anticipated increase in production would come from projects with approved FDPs, including the Bonga South development, while other projects are expected to reach FID in the near to medium term.
Amadasu also said the executive order would have a wider impact on Nigeria’s economy, particularly the marine economy, which would need to expand its logistics and marine infrastructure to support the expected increase in deep offshore activities.
“It aims to make Nigeria the regional hub for deep offshore projects,” he said.
Amadasu listed other potential benefits of the executive order as increased reserves, technology and skills transfer, and job creation.
The executive commissioner said the policy would therefore provide a framework for attracting fresh investments into Nigeria’s deep offshore sector while supporting higher crude oil and condensate production.