NNPC ready to implement new production sharing contract framework – Ojulari
August 12, 2026 8:31 pm
The Group Chief Executive Officer of NNPC Limited, Bayo Ojulari
The Nigerian National Petroleum Company Limited has said it is ready to implement the amended Production Sharing Contract framework following the Federal Government’s approval of a new incentive regime for deep offshore oil and gas projects.
The NNPC Group Chief Executive Officer, Bayo Ojulari, disclosed this in a post on his official X handle on Wednesday following President Bola Tinubu’s signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
Ojulari said the new framework would replace years of case-by-case negotiations with a clearer and more transparent regime designed to provide greater certainty for investors in Nigeria’s deep offshore petroleum sector.
He said the policy could unlock up to $50bn in new investment, with the Bonga South West project expected to be the first beneficiary.
“Nigeria Just Made Offshore Oil Investment Simpler and More Attractive. President Bola Tinubu has signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, replacing years of case-by-case negotiation with one clear, transparent framework.”
Ojulari said NNPC Limited would serve as the Federal Government’s nominated counterparty and was prepared to implement the amendments to the PSC framework.
“Up to $50bn in new investment. Bonga South West as the first beneficiary. And NNPC Limited standing as the Federation’s nominated counterparty, ready to implement the PSC amendments to bring it to life.”
The NNPC GCEO said the policy was expected to translate into increased economic activity, job creation and deeper participation by Nigerian businesses in the offshore oil industry.
“This means more jobs for Nigerians, deeper local supply chains, faster progress toward our 3 million barrels per day production ambition by 2030.”
He added that the policy would strengthen Nigeria’s ability to compete for international capital at a time when oil-producing countries were seeking to attract investment into increasingly complex and capital-intensive offshore developments.
“As always, certainty attracts capital. Nigeria is showing the world it’s ready.”
The latest development forms part of the Federal Government’s broader efforts to revive investment in Nigeria’s oil and gas sector by providing clearer fiscal and regulatory terms for investors.
Deep offshore projects typically require substantial upfront capital because of the technical complexity, specialised equipment and long development periods involved in producing crude from deepwater fields.
The government has therefore been seeking to improve the investment environment and provide incentives that can encourage oil companies to sanction major projects that have remained delayed for years.
The Bonga South West project, which is being developed by Shell and its partners, is among the major offshore developments expected to add significantly to Nigeria’s future crude oil production.
The project is also expected to support additional spending across the Nigerian oilfield services and supply chain, potentially creating opportunities for local contractors and service providers.
The Federal Government has set an ambition of raising Nigeria’s crude oil production to three million barrels per day by 2030, with increased investment in deepwater and other technically challenging assets expected to play an important role.
Damilola Aina is a journalist at Punch Newspapers with over five years of experience covering energy, business, investment, infrastructure, and property sectors. He specializes in producing well-researched and insightful reports that inform readers and provide clarity on complex topics. Damilola’s work demonstrates practical newsroom experience, editorial insight, and a strong commitment to accurate and engaging journalism.
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