FG offers 70:30 profit oil split for new fields

The Federal Government of Nigeria has introduced a new fiscal incentive for deep offshore oil and gas projects, offering qualifying developments a 70:30 profit-oil split in favor of contractors, even if existing production in the same contract area has already moved to a higher government share. This incentive, detailed in the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, signed by President Bola Tinubu on August 6, 2026, aims to make new projects more commercially attractive by resetting the profit-oil sliding scale for eligible greenfield crude oil or non-associated gas projects.

To qualify, the project must have a Final Investment Decision (FID) taken by December 31, 2029, and be ring-fenced for cost recovery and tax purposes. The government also introduced a Standard Production Tax Credit of up to $3 per barrel for projects with reserves of up to 400 million barrels, with higher reserves eligible for up to $4.50 per barrel.

Brief written by urgent.news from Punch Nigeria's own syndicated text. Machine-written — may contain errors; check the original before relying on it.