- The Nigerian National Petroleum Corporation says it is set to revisit the fiscal terms of the existing Production Sharing Contracts(PSC) entered into by it with some international oil and gas companies with a view to seeking favourable benefits to the country based on prevailing realities in the industry.
- The Group Managing Director of NNPC, Dr. Ibe Kachikwu who was speaking at the France-Nigeria Business Forum organized to mark the state visit of President Muhammadu Buhari to France, said that in the weeks and months ahead, the corporation will be re-negotiating the contracts to extract as much benefit as possible for the nation.
- Kachikwu was quoted in a statement by the Corporation on Tuesday that although the PSC agreements were firm contracts, which should be adhered to, the NNPC was allowed to make use of the window that created space for re-negotiation.
We intend to begin the process of the re-negotiation of the PSCs to see what value chain and improvements we can have from these contracts. Some of the contracts were negotiated over 20 years ago and they have since been overtaken by new realities in the industry, the GMD said.
He, however noted that in carrying out a review of the existing PSCs, care must be taken not to create an anti-investment atmosphere as that might be counterproductive to the industry.