- Associated Gas (gas found in an oil field): The costs of handling this gas are simply treated as part of the overall cost of oil production.
- Non-Associated Gas (gas from a dedicated gas field): This is incentivized with tax credits. For example, a company can claim a credit of $1.00/mcf for gas that has less than 10% liquids.
- Scenario: A company named “GasField Ltd,” operating a non-associated gas field, could claim ₦400 million per year in tax credits.
