Nigeria should review PSCs: NEITI

LAGOS, June 25, 2018 – The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for the Nigerian government to review the deep offshore and inland basin PSCs.

In a paper published Sunday about the Nigerian National Petroleum Corporation’s operations, NEITI said obsolete legislation was causing losses totalling trillions of naira. The Deep Offshore and Inland Basin Production Sharing Contracts Act of 1993 called for PSCs to be reviewed when oil prices rose above USD 20 per barrel and after 15 years of operations.

“The fact that PSC productions now account for almost 50% of total oil production makes an urgent case for a review of the terms as stipulated by the act,” NEITI said in its report.

The organisation also urged the NOC to carry out a value-for-money audit on its JVs and to develop an index to measure its progress on transparency.

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