• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News Politics

Nigeria is exploring getting IOCs to refund $21 billion 

Onome Ohwovoriole by Onome Ohwovoriole
September 1, 2018
in Politics
Ibe Kachikwu, APPO, Energy projects in Africa

Ibe Kachikwu: Minister of State for Petroleum

Share on FacebookShare on TwitterShare on Linkedin

International Oil Companies (IOCs) in the country may have a huge bill to pay as the House of Representatives have blamed the Department of Petroleum Resources (DPR) for its failure to renew agreements on Production Sharing Contracts (PSCs). The lower house has also resolved to write the embassies of the affected IOCs seeking for a refund.

Solomon Ewuga who represented the DPR during the hearing, stated that the agency had  had begun a review of the PSCs, but it had been stalled.

Minister of State for Petroleum, Ibe Kachikwu in December last year disclosed that the Federal Governnment had intentions to amend the deep offshore act.  He also estimated that Nigeria had lost over $21 billion by not enforcing the deep offshore act.

RelatedStories

NEITI says Nigeria lost $2.77 billion to oil theft in 2019

NNPC, FIRS, 2 others generated N28 trillion revenue for Nigeria in 3 years – NEITI

April 29, 2022
Timipre Sylva says he has directed NMDPRA to sanction those making profits from fuel crises

FG officially scraps DPR, PPPRA, PEF, for new agencies, sacks their CEOs

October 19, 2021

What is a Production Sharing Contract ?   

The Production Sharing Contract Act of 1993 was enacted in response to the difficulties faced by the government in funding Joint Venture (JV) arrangements as well as encourage companies to invest the deep offshore space.

Under this arrangement, the NNPC holds the blocs while the oil companies are “contractors”. The contractor bears all costs of exploration and production, and will receive no refunds in the event of no oil being found.

Cost is recoverable only if the find is in commercial quantity, with provisions made for taxes, capital and investment costs. The government( through the NNPC), then works out a sharing formula with the oil company. Majority of these PSCs were negotiated at the time oil was trading below $20, and account for some of Nigera’s most prolific oil blocs.

A section of the Act provides the review of the agreement once the crude oil price exceeds $20 per barrel. Oil price has traded above $20 for over a decade but no form of review was carried out.

Easier said than done 

The move by the government to renegotiate terms may be near impossible, as the leases are currently running. A few them however are up for renewal in a few years.

More uncertainty 

News of possible backdated payments adds to the uncertainty surrounding the petroleum industry in the country. More so with President Muhammadu Buhari’s refusal to sign the Petroleum Industry Governance Bill (PIGB).

 

 


Follow us for Breaking News and Market Intelligence.
Tags: DPRInternational Oil Companies (IOCs)
Onome Ohwovoriole

Onome Ohwovoriole

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

Related Posts

NEITI says Nigeria lost $2.77 billion to oil theft in 2019
Business

NNPC, FIRS, 2 others generated N28 trillion revenue for Nigeria in 3 years – NEITI

April 29, 2022
Timipre Sylva says he has directed NMDPRA to sanction those making profits from fuel crises
Business News

FG officially scraps DPR, PPPRA, PEF, for new agencies, sacks their CEOs

October 19, 2021
electoral Act Amendment Bill
Business News

Senate moves to get oil and gas firms to relocate to Niger Delta region

September 29, 2021
Nigeria to become oil bunkering hub in Africa – DPR
Energy

DPR targets revenue of N3.2 trillion by December 2021

September 16, 2021
Godswill Akpabio, President Bola Tinubu
Business News

FG says international oil companies owe NDDC $4 billion

August 19, 2021
Nigeria to become oil bunkering hub in Africa – DPR
Energy

DPR receives $500 million gas investment proposals within a year

August 11, 2021
Next Post
capital-gain

What the terms ‘Capital Gains’ and ‘Investment Income’ mean

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Africa needs gas as a transformational fuel for development – Sahara Group 
  • FG to pilot 6-month training for 3,000 artisans in 10 construction trades across 3 states  
  • Former President Muhammadu Buhari dies in London 

Follow us on social media:

Recent News

Africa needs gas as a transformational fuel for development – Sahara Group 

Africa needs gas as a transformational fuel for development – Sahara Group 

July 13, 2025
Musa Dangiwa,

FG to pilot 6-month training for 3,000 artisans in 10 construction trades across 3 states  

July 13, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics