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New Regulations Could Kill Nigeria’s Promising Deepwater Oil Industry

New Regulations Could Kill Nigeria’s Promising Deepwater Oil Industry

Nigeria may lose up to 38 percent of its deepwater oil production under the terms of the proposed new Petroleum Industry Bill, Nigerian daily Punch reports, adding that this could happen by 2025. Further, the industry could lose almost a third of its deepwater production potential by 2030 because of the bill.

The long-awaited piece of legislation, which has been in the works since 2008, should replace a collection of more than a dozen separate laws and regulations. The country’s parliament plans to pass the new law in the first quarter of 2021.

However, according to the industry, the bill in its current form will hurt rather than help Nigeria’s oil production. “The current PIB 2020 does not improve the investment environment for new project FIDs (final investment decisions) to be taken,” the country’s Oil Producers’ Trade Section said in a document cited by Punch.

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Source: Oilprice

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