NNPC ready to implement new production sharing contract framework – Ojulari

The Nigerian National Petroleum Company Limited (NNPC) has announced its readiness to implement a new Production Sharing Contract (PSC) framework, following the Federal Government's approval of a revised incentive regime for deep offshore oil and gas projects. NNPC Group CEO Bayo Ojulari revealed this on Wednesday, in response to President Bola Tinubu's signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.

This new framework seeks to replace years of individual negotiations with a clearer, more transparent system designed to provide greater certainty for investors in Nigeria's deep offshore petroleum sector. NNPC anticipates that the new policy could attract up to $50 billion in new investment, with the Bonga South West project set to be the initial beneficiary.

Ojulari stated that NNPC would act as the Federal Government's nominated counterparty and is prepared to execute the amendments to the PSC framework. The policy is expected to stimulate economic growth, create jobs, and deepen local participation in the offshore oil industry. Greater certainty in investment terms will also bolster Nigeria's capacity to attract international capital in an increasingly competitive global market.