FG targets 4m bpd oil production, 10bcf of gas by 2030

The Federal Government has said that it is targeting four million barrels per day (bpd) of oil production and 10 billion cubic feet (bcf) of gas production by 2030.

Mrs. Olu Verheijen, Special Advisor (SA) to the President on Energy, made this known in a statement made available to the newsmen on Friday in Abuja.

The statement was signed by Morenike Adewunmi, Stakeholder Manager in the Office of the Special Adviser.

Verheijen said the feat would be achieved through commitment to the reform agenda and unprecedented incentives for oil and gas production unveiled by President Bola Tinubu’s administration.

“Since President Tinubu assumed office in May 2023, the government has embarked on a series of new reforms to improve the competitiveness of its oil and gas industry.

“The reforms also aimed at bringing down the costs and timeliness of doing business in a sector that continues to be the biggest earner of foreign exchange for the country.

“These reforms, which include three presidential directives issued in February 2024, will create tens of thousands of new jobs, improve foreign exchange earnings, stimulate tax revenues and contribute to Nigeria’s macroeconomic stability,” she said

Verheijen disclosed that the roll out of the reforms was being coordinated by her office.

She said that in a major move to advance the ongoing structural reforms in the oil and gas industry, President Tinubu approved the issuance of two new sets of fiscal incentives.

The incentives, according to her, included VAT waiver covering gas, diesel, electric vehicles and clean cooking equipment, and tax credits for new investments in the exploration and production of deep water oil and gas.

She said the new fiscal incentives, expected to take effect immediately, are contained in the documents issued by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun:

The documents, according to her, included; Value Added Tax (VAT) Modification Order 2024, Notice of Tax Incentives for Deep Offshore Oil & Gas Production in line with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.

The Presidential aide said the Notice of Tax Incentives was built on the directive issued by the President in February, which provided incentives for onshore oil and gas investments.

“This is the first time that Nigeria is outlining a fiscal framework for deep water gas since basin exploration commenced in 1991.

“The incentives are in alignment with the Presidential Gas for Growth Initiative, which aims to fast-track the development of natural gas, displace fossil fuels in transport, and promote affordability of gas; the incentives will equally bolster the country’s energy security,” she said

Verheijen said the reforms agenda would, equally, help the country unlock 10 billion dollar of new investments in deep water oil and gas projects in the near to medium term

“Since Nigeria’s last deep water project—the Egina project—was approved in 2013, International Oil Companies operating in Nigeria have committed more than 82 billion dollar in deep water investments to other countries that they deem more competitive.

“Over the next few years, they plan to spend another 90 billion dollars to develop deep water oil and gas projects.

“This is the pool of funds that our reforms are targeting,” she said.

Verheijen commended the President for the deliberate efforts and programs bringing positive momentum in the oil and gas industry.