• Says only 24% of oil output, 19% of gas currently produced deep offshore
•NMDPRA: Regulatory certainty key to attracting investment
Emmanuel Addeh in Abuja and Peter Uzoho in Lagos
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that 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 $50 billion 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 NUPRC, Enorense Amadasu, said this on NTA during an interview, a statement by the agency’s spokesman, Eniola Akinkuotu, stated yesterday.
Also, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Umar Rabiu, has said regulatory certainty is critical to attracting and retaining long-term investment in Nigeria’s midstream and downstream petroleum sectors.
Amadasu explained that the reform establishes a transparent, rules-based investment framework capable of supporting the next generation of deep offshore developments.
He noted that presently, Nigeria produces about 1.7 million bpd of crude oil and condensate but deep offshore accounts for just about 24 per cent of total oil production and19 per cent 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 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. 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 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 Amadasu include: growth in reserves, technological/skills transfer and new jobs.
Meanwhile, the Chief Executive of the NMDPRA, Rabiu, has said regulatory certainty is critical to attracting and retaining long-term investment in Nigeria’s midstream and downstream petroleum sectors.
Rabiu, who made the assertion in a post on his social media handles yesterday, said investors were generally prepared to manage commercial risks but found regulatory uncertainty considerably more difficult to accommodate when making investment decisions.
He said government efforts to provide fiscal incentives, financing support and policy reforms could achieve little if investors remained uncertain about how regulations would be applied in practice.
According to him, investors need confidence that rules are clear, regulatory decisions are consistent and approval processes are predictable before committing capital to long-term projects.
Rabiu said the Petroleum Industry Act (PIA) had established a strong legal and regulatory framework for Nigeria’s petroleum industry, anchored on transparency, competition and accountability.
He said the responsibility of the NMDPRA was to ensure that those principles were reflected in its day-to-day regulatory activities.
Having spent almost three decades on the commercial and operational side of the downstream petroleum industry before joining the Authority, Rabiu said he understood the concerns that investors typically consider before committing funds to major projects.
“Will approvals be timely? Will regulations be applied consistently? Can institutions be relied upon to make fair and predictable decisions?” he asked.
He said the questions were particularly important for investments in refineries, pipelines, storage facilities and gas infrastructure because such assets were designed to operate over several years and required a stable regulatory environment throughout their lifespan.
“Good regulation goes beyond issuing licences or enforcing compliance. It provides certainty. It creates an environment where businesses can plan, investment can grow and consumers can have confidence that the market is being regulated fairly,” he said.
Rabiu said the Authority was therefore strengthening collaboration with other government institutions to promote greater coordination in the regulation of the sector.
He noted that effective regulation depended not only on the quality of policies but also on their consistent implementation across government agencies.
According to him, better institutional coordination would provide industry operators and investors with a more predictable regulatory environment.
He stressed that the effectiveness of reforms should ultimately be judged by how they were implemented, noting that every licence issued, inspection conducted and regulatory decision taken had implications for confidence in Nigeria’s regulatory system.
“Our responsibility is to carry out that mandate fairly, consistently and transparently, so that Nigeria continues to offer an environment where responsible investment can grow and the petroleum industry can continue to develop,” he said.
The NMDPRA chief said the Authority would continue its engagement with industry operators and other stakeholders as it seeks to strengthen Nigeria’s midstream and downstream petroleum sectors.