Amendment of Nigeria’s Production Sharing Contract Regime
The President of the Federal Republic of Nigeria recently signed into law the Deep Offshore and Inland Basin Production Sharing Contracts (Amendment) Act 2019 (the “Amendment Act”). The Amendment Act modified the erstwhile Deep Offshore and Inland Basin Production Sharing Contracts Decree of 1999 (the “Principal Legislation” or the “Decree”).
The amendment appears to have been long overdue in view of the provision of the Principal Legislation that the Decree shall be liable to review when the price of crude oil at any time exceeds $20 per barrel, and also after a period of 15 years from its date of commencement, and every five years thereafter.
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