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Nigeria's upstream petroleum sector: looking back at 2020 and looking ahead in 2021 | Bracewell LLP


The existing rates of 10% for deep offshore and 7.5% for frontier basins are unchanged.
Crude oil by price: 0% for an oil price of below US$ 50 per barrel, 5% at an oil price of US$ 100 per barrel and 10% for above US$ 150, with linear interpolation between these markers. These rates are for 2020 and are to be increased by 2% each year. No royalty is payable in frontier acreage.
 
 
Grandfathering or voluntary conversion of existing licences:
Last year also saw proposed changes to Nigerian content requirements. The Nigerian Content Development and Enforcement Bill (Bill) proposed to repeal and replace the Nigerian Oil and Gas Industry Content Development Act 2010. Important changes in the draft Bill we saw included the end of charging of the content development levy, with the Board to instead receive funding from the Government (however the power and solid mineral industries will face content levies). However, this Bill has not yet become law. ....

Timipre Sylva , Oil Gas Ltd , Nigerian Gas Flare Commercialization Programme , Nigerian Agip Oil Co Ltd , Nigerian Upstream Regulatory Commission , Nigeria Department Of Petroleum Resources , Africa Oil , Petroleum Industry Bill , Nigerian Oil , National Gas Expansion Programme , Nigerian Content Development , National Assembly , Petroleum Regulatory Authority , Ep Nigeria Ltd , Petrobras Oil Gas , Petroleum Resources Timipre Sylva , Nigeria Gas Transportation Network Code , Gas Industry Content Development , Petroleum Industry , President Buhari , Nigerian Midstream , Downstream Petroleum Regulatory Authority , Enforcement Bill , Gas Industry Content Development Act , Petroleum Resources , Nigerian Gas Flare Commercialization ,

Nigeria's Upstream Petroleum Sector


Friday, January 22, 2021
We review what happened in Nigeria’s upstream petroleum sector during the previous year – a year that saw a new marginal field bid round, an oil price crash and the onset of a terrible global pandemic. We also consider what we can expect in 2021 and if this will be the year the Petroleum Industry Bill finally overhauls the sector.
What happened in legal matters?
Upon his re-election in 2019, President Buhari set out an ambitious plan to pass the Petroleum Industry Bill (PIB) by the end of 2020. He did not achieve that. However, progress was made: the PIB
 passed its second reading in both the Senate and the House of Representatives in Nigeria in Q4 2020 and is now under committee review. ....

Timipre Sylva , Oil Gas Ltd , Nigerian Gas Flare Commercialization Programme , Nigerian Agip Oil Co Ltd , Nigerian Upstream Regulatory Commission , Nigeria Department Of Petroleum Resources , Africa Oil , Petroleum Industry Bill , Nigerian Oil , National Gas Expansion Programme , Nigerian Content Development , National Assembly , Petroleum Regulatory Authority , Ep Nigeria Ltd , Petrobras Oil Gas , Petroleum Resources Timipre Sylva , Nigeria Gas Transportation Network Code , Gas Industry Content Development , Petroleum Industry , President Buhari , Nigerian Midstream , Downstream Petroleum Regulatory Authority , Enforcement Bill , Gas Industry Content Development Act , Petroleum Resources , Nigerian Gas Flare Commercialization ,