DEEP OFFSHORE AND INLAND BASIN PRODUCTION SHARING CONTRACT (AMENDMENT) ACT, 2019
CENTER FOR LAW OF NIGERIA : FEDERAL LAWS
ONLINE COPY OF THIS LAW IS FREE. PDF IS AVAILABLE FOR N2000. PDF COMPENDIUM OF ALL LAWS/CATEGORIES ALSO AVAILABLE Email: lawnigeria@gmail.com and info@lawnigeria.com or Text: +234 706 710 2097
| DOWNLOAD PDF COPY OF THIS LAW (N2000) |
THE DEEP OFFSHORE AND INLAND BASIN PRODUCTION CONTRACT, CAP D3 LFN 2004 (AMENDMENT) ACT, 2019
EXPLANATORY MEMORANDUM
An Act to amend the Deep Offshore and Inland Basin Production Sharing Contract, Cap. D3, LFN 2004 and for other matters connected thereto.
[EDITOR’S NOTE: DEVELOPMENT HISTORY OF SENATE BILL LEADING TO FINAL ACT: 1ST READING: THURSDAY, 3RD OCTOBER, 2019′ 2ND READING: TUESDAY, 10TH OCTOBER, 2019′ 3RD READING: TUESDAY, 15TH OCTOBER, 2019]
ARRANGEMENT OF SECTIONS
1. Amendment of the Deep Offshore and Inland Basin Sharing Contract Act, Cap D3, LFN, 2004
2. Amendment of section 5.
3. Deletion of section 16.
4. Insertion of new section 17.
5. Insertion of new section 18.
6. Short title.
THE DEEP OFFSHORE AND INLAND BASIN PRODUCTION CONTRACT, CAP D3 LFN 2004 (AMENDMENT) ACT, 2019
An Act to amend the Deep Offshore and Inland Basin Production Sharing Contract, Cap. D3, LFN 2004 and for other matters connected thereto.
[COMMENCEMENT] (NOVEMBER 4, 2019)
1. Amendment of the Deep Offshore and Inland Basin Sharing Contract Act, Cap D3, LFN, 2004
The Deep Offshore and Inland Basin Production Sharing Contract Act, CAP D3, LFN 2004 (in this Act referred to as the “Principal Act”) is amended as set out in this Act.
2. Amendment of section 5.
The Principal Act is amended section 5by substituting the existing section with a new section as follows:
“5(1) Royalties shall be calculated on a field basis. The royalty shall be at a rate per centum of the changeable volume of the crude oil and condensates produced from the relevant area in the relevant period as follows:
(a) in Deep offshore: greater than 200m water depth ………………. 10 per cent;
(b) in Frontier/inland basin: 7.5 per cent.
Royalty by Price
(2) Royalty by price is adopted in order to allow for royalty reflexivity based on changing prices of crude oil, condensates and natural gas. This also replaces the necessity for Section 16 of the Principal Act.
(3) The royalty rates based on price shall be identical for the various water depths in Deep offshore (beyond 200m water depth) including frontier acreages for crude oil and condensates.
(4) The royalty rates shall be based on increases that exceeds US$20 per barrel, and shall be determined separately for crude oil and condensates as follows:
(a) from US$ 0 and up to US$20 per barrel: ……………………… o percent
(b) above US$ 20 and up to US$ 60 per barrel: ……………….. 2.5%
(c) above US$ 60 and up to US$ 100 per barrel: ……………… 4%
(d) above US$100 and up to US$150 per barrel: ……………….8%
(e) above US$ 150 : …………………….. 10%
3. Deletion of section 16.
Section 16 of the Principal Act is deleted.
4. Insertion of new section 17.
The principal Act is amended by inserting a new section 17 as follows:
“17. The Minister shall cause the Corporation to call for a review of production sharing contracts every eight years.”
| READ MORE | DOWNLOAD PDF OF THIS LAW (N1,000) |
Start writing or type / to choose a block
ALPHABETICAL INDEX TO THE LAWS OF NIGERIA (UPDATED)
LAWS MADE BY THE NATIONAL ASSEMBLY OF NIGERIA [1999 – Date]
Table
