By Omoh Gabriel
President Buhari assenting to Bill amending Deep Offshore (and Inland Basin Production Sharing Contract) Act, assisted by Chief of Staff Abba Kyari.
Nigeria has amended the deep offshore and inland basin oil production sharing contract with President Muhammadu Buhari assenting to the Bill amending the Deep Offshore and Inland Basin Production Sharing Contract Act. The President in a Tweet said “This afternoon I assented to the Bill amending the Deep Offshore and Inland Basin Production Sharing Contract Act. This is a landmark moment for Nigeria; let me use this opportunity to thank the National Assembly for the cooperation that produced this long overdue amendment”.
The Senate passed the Deep Offshore and Inland Basin Production Sharing Contract Act 2004 (Amendment) Bill, 2019 (the Bill) in October 2019. The Bill which aims to amend the provisions of the Deep Offshore and Inland Basin oil Production Sharing Contract Act 2004 (DOIBPSCA or the Act) also aims to shore up Nigeria’s revenue earnings. DOIBPSCA regulates the operations of oil and gas companies operating under production sharing contracts (PSCs) in the Deep Offshore and Inland Basin. The Act gives effect to certain incentives (such as lower royalty and tax rates etc.) granted to oil and gas companies operating under PSCs in the Deep Offshore and Inland Basin areas of Nigeria.
The President who is currently on a private visit to London, United Kingdom, described the signing as a landmark moment for Nigeria. The amended Bill will generate an estimated $500m in additional revenues for the FG in 2020, and over $1bn from 2021 Deep Offshore (and Inland Basin Production Sharing Contract) Act was recently passed into law by the National Assembly. President Buhari in his tweet appreciated the lawmakers for their cooperation in making the ‘long overdue’ amendment possible. He added that that during his 2020 Budget Presentation Speech before the National Assembly in October he had earlier highlighted the need to urgently review the fiscal terms for deep offshore oil fields, to reflect current realities and to ensure increased government revenues.
