The Federal Government has introduced a new fiscal incentive for qualifying deep offshore oil and gas projects, allowing contractors to restart the profit-oil sharing scale at 70:30 in their favour, even where existing production within the same contract area has already attracted a higher government share.

The provision is contained in the Deep Offshore Oil and Gas Projects Incentives Tax Remission Order, 2026, signed by President Bola Tinubu on August 6, 2026, and subsequently gazetted by the Federal Government.

The new Profit Oil Reset is designed to encourage fresh deep offshore investments by shielding new projects from higher profit-oil sharing rates that may have been reached by older production within the same contract area.

— CHANNELS