Nigeria to renegotiate fiscal terms for offshore PSCs
The timing of renegotiation of fiscal terms for offshore production-sharing contracts (PSCs) signed two decades ago is questionable for state-owned NNPC
It comes at a time of low oil prices in an industry already lacking regulatory clarity. Nigeria relies on oil for over 70% of its overall revenues and while it is keen to ensure a greater return from oil, renegotiation of contracts will not come easily. NNPC’s new group managing director Ibe Kachikwu 15 September announced a planned review of the fiscal terms of the PSCs, first signed with the major oil companies in the early 1990s, to help solve NNPC’s ability to fund its share in joint venture oil operations and to incentivise investment in frontier fields in Nigeria’s deep and ultra-deep waters. “We intend to begin the process of the re-negotiation of the PSCs to see what value chain and
Also in this section
2 April 2026
Alongside a rapid continued build-out of renewables, China’s latest five-year plan stresses the value of domestic hydrocarbon production for energy security and calls for increased Russian gas imports
2 April 2026
The government is taking important steps to revive domestic production, lift investment and benefit from the geopolitical crisis even if more needs to be done in the longer term
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
