Following demands by International Oil Companies (IOCs), the Federal Government has agreed to reduce deepwater royalties and other taxes as described in the Petroleum Industry Bill (PIB), with deepwater royalties coming down to 5% from the previous 7.5% and production levels boosted to 50,000 bpd from 15,000 bpd. 

Gail Anderson, research director with Wood Mackenzie, noted that the changes to the Bill, “shows that the government listened. They recognize the need to attract investment, not just in the Nigerian context but globally in the energy transition. The competition is going to be more intense, and this is a move in the right direction to attain and attract investment.” 

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Source: AfricaOilandPower