$10bn Bonga South Project, Nine Others Could Lift Nigeria’s Offshore Output — NUPRC

Nigeria’s deep offshore oil production could receive a significant boost from the $10bn Bonga South project and eight other developments with approved Field Development Plans, the Nigerian Upstream Petroleum Regulatory Commission has said.

The projects are expected to support the addition of almost one million barrels per day to Nigeria’s crude oil and condensate production over the next four to five years, as operators move towards Final Investment Decisions.

The Executive Commissioner, Development and Production, NUPRC, Engineer Enorense Amadasu, disclosed this on Tuesday during a live appearance on NTA hosted by Cyril Stober.

Amadasu, who represented the Commission Chief Executive, said the Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026 signed by President Bola Tinubu could accelerate investment and development across Nigeria’s deep offshore sector.

According to him, nine deep offshore projects already have approved Field Development Plans, positioning them to progress towards FIDs in the near to medium term.

“So, where will these volumes be coming from? Nine of these projects have approved FDPs so the next step expected is the FID in the near to midterm,” Amadasu said.

He identified the $10bn Bonga South project as one of the key developments expected to contribute to the projected production growth, with the project expected to come on stream in 2027.

“The $10bn Bonga South will come in 2027 and within the next four to five years, we are expecting almost an additional one million barrels additional per day,” he said.

Executive Order targets deep offshore investment

Amadasu said the new Executive Order could unlock about $50bn in investments by providing a transparent and rules-based framework for the development of deep offshore projects.

Nigeria currently produces about 1.7 million barrels per day of crude oil and condensate, while deep offshore production accounts for about 24 per cent of total oil output and 19 per cent of gas production.

He said Nigeria has produced more than 4.6 billion barrels from deep offshore assets to date, equivalent to about 5,000 tankers in cargo terms.

“We are on the right path all thanks to Mr. President. It will be a huge leap,” he said.

The NUPRC official said the fiscal reforms were designed to create greater certainty for investors and encourage international oil companies to take investment decisions on approved projects.

Deep offshore expansion to support marine economy

Beyond increasing oil production, Amadasu said the expected expansion of deep offshore activities could stimulate Nigeria’s marine economy by creating demand for stronger logistics and marine infrastructure.

He said the country would need to expand its marine and logistics base to support the expected increase in offshore developments.

“It aims to make Nigeria the regional hub for deep offshore projects,” Amadasu said.

He added that the reforms could also contribute to reserve growth, technology and skills transfer, and job creation as more deep-offshore projects move towards development.

The NUPRC said the Executive Order therefore provides an opportunity to accelerate investment decisions on existing offshore projects while positioning Nigeria to capture wider economic benefits from its deepwater resources.