NNPC ready to implement new deep offshore PSC incentives — Ojulari
The Nigerian National Petroleum Company Limited has expressed its readiness 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 while speaking on the latest development in Nigeria’s upstream petroleum sector.
Ojulari said the company was prepared to work with relevant government agencies and industry stakeholders to ensure the effective implementation of the new framework.
The Federal Government’s decision is aimed at improving the attractiveness of Nigeria’s deep offshore sector and encouraging fresh investments in oil and gas exploration and production.
The new incentive regime is expected to provide improved fiscal conditions for investors and support the development of offshore projects that require significant capital and advanced technology.
For NNPC, the revised Production Sharing Contract framework is an important step towards unlocking additional investment and increasing Nigeria’s crude oil and gas production.
The company said the implementation of the new incentives would also complement ongoing reforms in the petroleum industry and help create a more competitive investment environment.
Nigeria has been seeking to attract new capital into its upstream sector amid declining production levels and increasing competition for international oil and gas investments.
Deep offshore projects are particularly important because of the substantial reserves located in Nigeria’s offshore fields, although their development requires significant financial commitments and specialised technology.
The NNPC leadership has repeatedly stressed the need for policies capable of improving investor confidence, accelerating project development and increasing production.
The amended PSC framework is expected to support these objectives by providing investors with clearer and more competitive terms for deep offshore operations.
The development also comes as the Nigerian Upstream Petroleum Regulatory Commission continues efforts to accelerate project approvals and attract billions of dollars in new investment into the upstream sector.
With the Federal Government now approving the new incentive regime, NNPC said it is positioned to commence implementation and work with operators to maximise the opportunities presented by the revised framework.
The company maintained that successful implementation would help unlock Nigeria’s offshore potential, strengthen energy security, increase government revenues and support the country’s broader economic growth objectives.
