Introduction
The President of the Federal Republic of Nigeria, Muhammadu
Buhari, on 4th November 2019, signed the Deep Offshore and Inland
Basin Production Sharing Contracts (PSC) (Amendment) Bill into law
(the "Amendment Act").
The Federal Government of Nigeria (FGN) anticipates that the
Amendment Act will significantly increase Nigeria's earnings
from oil wells located deep offshore and give it a fair and
equitable share of income derived from its natural resources.
Purpose of the Deep Offshore and Inland Basin Production Sharing
Contracts Act CAP. D3 LFN 2004 (the "Principal Act")
The Principal Act, was promulgated as a Military decree in 1999
but given retroactive effect from 1st January 1993. It was designed
to enshrine into law certain fiscal incentives given to exploration
companies operating in the Deep Offshore and Inland Basin areas
(mainly international oil companies [IOCs]) (the
"Operators") under PSCs with the Nigerian National
Petroleum
