Tinubu’s Offshore Policy Targets 1m bpd Increase, $50bn Investment – NUPRC

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that the Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026 signed by President Bola Tinubu could unlock about $50 billion in investments and increase the country’s crude oil and condensate production by an additional one million barrels per day (bpd).

The Commission Chief Executive of NUPRC, Mrs. Oritsemeyiwa Eyesan, disclosed this on Tuesday during Tuesday Live on NTA.

Represented by the Executive Commissioner, Development and Production, NUPRC, Enorense Amadasu, said the executive order had created a transparent and rules-based investment framework that would support new deep offshore developments and encourage investors to take Final Investment Decisions (FIDs).

She said Nigeria currently produces about 1.7 million bpd of crude oil and condensate, with deep offshore operations accounting for about 24 per cent of total oil production and 19 per cent of gas output.

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According to her, the country has so far produced more than 4.6 billion barrels from deep offshore assets, equivalent to about 5,000 cargoes.

Eyesan said the new incentives would help accelerate projects whose Field Development Plans (FDPs) had already been approved by the NUPRC.

The NUPRC boss added that the $10 billion Bonga South project, expected to come on stream in 2027, would be among the projects driving the anticipated production increase.

“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 one million barrels additional per day,” he said.

Eyesan said the executive order would also have wider economic benefits, particularly for the marine economy, as increased deep offshore activities would require expansion of Nigeria’s logistics and marine infrastructure.

She further identified increased reserves, technology and skills transfer and job creation as some of the expected benefits of the policy.

The executive order, she said is expected to provide greater certainty for investors and support the development of deep offshore oil and gas projects that require substantial capital and long-term investment.