Nigeria endangers IOC interest for quick fiscal fix
The government’s revision of PSCs to seek more revenue from oil majors will backfire if it prompts them to reevaluate their portfolio investment priorities
The latest move by Nigeria to raise revenue from the oil industry, a law constituted in record time in November, could add up to $1.5bn to the government’s coffers over the next two years but quickly backfire in subsequent years, say participants in the country’s oil sector. Nigeria’s President Muhammadu Buhari gave executive assent to a bill amending the 1993 Deep Offshore and Inland Basin Production Sharing Contract (PSC), with the aim of increasing the governments revenue from oil production. Before the amendments, royalties ranged from 0pc to 12pc based on the water depth of the field. The new law eliminates the 0pc rate and royalties are calculated on a basis dependent on the chargeab

Also in this section
25 July 2025
Mozambique’s insurgency continues, but the security situation near the LNG site has significantly improved, with TotalEnergies aiming to lift its force majeure within months
25 July 2025
There is a bifurcation in the global oil market as China’s stockpiling contrasts with reduced inventories elsewhere
24 July 2025
The reaction to proposed sanctions on Russian oil buyers has been muted, suggesting trader fatigue with Trump’s frequent bold and erratic threats
24 July 2025
Trump energy policies and changing consumer trends to upend oil supply and demand