By Yemie Adeoye
Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has said the Federal Government increased its stake in deep offshore blocks to 73 percent because of prevailing realities in the global oil and gas industry.
Government’s initial Production Sharing Contract, PSC, for deep water fields was reviewed from 61 percent in the draft Petroleum Industry Bill, currently before the National Assembly for consideration.
Speaking at the 3rd Nigeria Investment Summit held in New York, under the auspices of the African Business Roundtable, Mrs. Alison-Madueke said: “I like to state once again that the proposed increase of government take to about 73 percent is not only competitive but considerate when we look at the scale of other entities around the world like Norway, Indonesia and even Angola, with even higher government take.”
Mrs. Alison-Madueke explained that based on prevailing realities in the global oil industry, it was only natural to review the terms of the PSC to reflect the current trend.
The novel 1993 PSC agreement was based on $20 per barrel price for crude oil real time, but records indicate that since the start of production in the PSC, field’s crude prices had been on the upswing and hence the consensus to have a review of the terms.
The minister also said the new PIB provided for a refreshing fiscal regime with strong incentives for enhanced exploration of new frontiers, especially in the Inland Sedimentary Basins, as well as providing strong support base for complete activation of the Gas Master Plan.