23 October 2019
On 15 October 2019, the Senate passed a Bill to amend the Deep Offshore and Inland Basin Production Sharing Contract Act (“PSC Act”). The Deep Offshore and Inland Basin Production Sharing Contract (Amendment) Bill 2019 (the “PSC Amendment Bill” or “Amendment Bill”) was ostensibly passed in the spirit of section 16 of the PSC Act and, as much as possible, to ‘equalize’ the State’s and investors’ interests in crude oil resources in the deep offshore and inland basin.
Section 16 of the PSC Act permits a review of the Act to ensure that the Federal Government of Nigeria (“FGN”) benefits should prices exceed the set threshold of US$20 per barrel, in real terms. In any event, the section also permits a review of the Act after 15 years from its commencement and thereafter, every subsequent 5 years.