According to a statement it involves several key regulatory bodies including the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
It was officially unveiled Tuesday to rejuvenate Nigeria’s ailing oil and gas industry, stressing the aims to attract about N10 billion in investment between the next 12 months to 18 months.
It came through a presidential directives developed and coordinated by the Special Adviser to the President on Energy, Mrs. Olu Verheijen, to ensure a competitive framework for the Nigerian oil & gas industry and coming on the heels of announcement by the Nigerian National Petroleum Company Limited (NNPC Ltd) and its Joint Venture (JV) partner in the Awoba Unit Field, Newcross Exploration and Production Ltd, of resumption of production from the Awoba field.
Speaking earlier, Mrs Verheijen stated that the new measures had been designed to deliver a competitive Internal Rate of Return (IRR) for oil & gas projects and attract over $10 billion in new investments within the next 12-18 month.
She further disclosed that among the guidelines signed were the NUPRC Guideline on Hydrocarbon Liquids Content in a Non-Associated Gas (NAG) Field, essential for accurately categorising and quantifying the hydrocarbons liquid content in the fields
It’s also to underscore Nigeria’s commitment to reaching its long term oil production target of 4 million barrels per day, while enhancing the reliability of gas supply to boost export earnings and fuel Nigeria’s industrialisation.
Additional guidelines, she said, focused on the applicability of tax credits and allowances for Non-Associated Gas Greenfield Development and the Midstream Capital and Gas Utilisation Allowance, providing taxpayers with clarity on the computation of the benefits.
Also speaking, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who presided over the signing ceremony at the Federal Ministry of Finance headquarters in Abuja, admitted that the sector had stagnated over the last decade.