On October 2, 2024, the Nigerian government, through the Minister of Finance and Coordinating Minister of the Economy unveiled the Notice of Tax Incentives on Deep Offshore Oil and Gas Production, 2024 (the Notice). The Notice comes on the heels of the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc) Order issued by President Bola Ahmed Tinubu to boost investment in Nigeria’s upstream Oil and Gas industry (the Industry).
In addition to offering production tax credits for gas production from non-associated gas developments, the Notice introduces additional incentives for deep offshore projects involving production-sharing or profit-sharing contracts. These incentives are expected to ensure competitive returns for investment in Nigeria’s deep offshore basins and generally drive renewed interest in the Industry.
In this newsletter, we explore the key provisions of the Notice, and examine their potential impact on new investors, existing players and stakeholders in the industry.
