The President of the Federal Republic of Nigeria recently assented to the Deep Offshore and Inland Basin Production Sharing Contract (PSC) Amendment Bill (“the Amendment Act”). The Amendment Act aims to significantly increase the revenue earnings derived by Nigeria from its offshore oil wells.
The Amendment Act amends the Deep Offshore and Inland Basin Production Sharing Contracts Act (“the Act”). The purpose of the Act is to give effect to fiscal incentives given to Oil and Gas companies operating in the Deep Offshore and Inland Basin areas under production sharing contracts between the Nigerian National Petroleum Corporation (NNPC) or other companies holding oil prospecting licences (OPL) or oil mining leases (OML) and various petroleum exploration and production companies.
This article highlights the minor changes made to the Act by the Amendment Act.
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