NNPC ready to implement new production sharing contract framework after federal government approval

This follows the Federal Government's approval of a new incentive regime for deep offshore oil and gas projects, with President Bola Tinubu signing the Deep Offshore Oil and Gas Projects Incentives Tax Remission Order, 2026. NNPC Group Chief Executive Officer, Bayo Ojulari, stated that this new framework replaces previous case-by-case negotiations with a clearer and more transparent system, aiming to provide greater certainty for investors in Nigeria’s deep offshore petroleum sector. Ojulari anticipates the policy could unlock up to $50 billion in new investment, with the Bonga South West project expected to be the first beneficiary.

NNPC Limited will serve as the Federal Government’s nominated counterparty. The policy is projected to increase economic activity, create jobs, and deepen Nigerian business participation in the offshore oil industry, contributing to the goal of 3 million barrels per day production by 2030. This development is part of broader government efforts to revive investment in Nigeria’s oil and gas sector by offering clearer fiscal and regulatory terms, particularly for capital-intensive deep offshore projects.