FG offers 70:30 profit oil split for new fields

The Federal Government of Nigeria has introduced a significant fiscal incentive for new deep offshore oil and gas projects, allowing qualifying developments to restart the profit-oil sharing scale at 70:30 in favour of contractors. This move is aimed at making fresh deep offshore developments more commercially attractive by ring-fencing new projects from the more burdensome profit-oil sharing levels reached by older production.

The provision, contained in the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, signed by President Bola Tinubu on August 6, 2026, applies to greenfield crude oil or non-associated gas projects where a Final Investment Decision had not been taken when the order commenced.

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