This regional shifts story centers on Nigeria and its effort to bring major deepwater projects back into the investment queue. President Bola Ahmed Tinubu approved a new offshore framework that the government says could revive up to $50 billion in delayed oil and gas investment. The policy replaces negotiations for individual projects with common eligibility rules and implementation procedures.
The first major test is Bonga South West, a development valued at about $10 billion. Shell chief executive Wael Sawan discussed the offshore investment pipeline with Tinubu before the government developed the broader framework. Nigerian National Petroleum Company can now amend eligible production sharing contracts to apply the incentives.
The Deep Offshore Oil and Gas Projects Incentives Tax Remission Order of 2026 gives the framework legal effect. Nigerian officials say qualifying projects should use domestic engineering, fabrication, marine logistics, technical services and project management where commercial and technical conditions allow.
Nigeria is competing with other deepwater regions for capital that can move between projects and countries. Clearer tax terms could improve planning for operators, contractors and vessel providers, but the impact will depend on contract amendments and actual project approvals. Progress at Bonga South West will show whether the framework can turn stalled plans into spending and production.