Nigeria Upstream (Oil and Gas) Fiscal and Regulatory Guide, 2024

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

$1500

Nigeria Upstream (Oil and Gas) Fiscal and Regulatory Report Overview

The upstream fiscal and regulatory outlook of Nigeria has undergone many changes. Nigeria has implemented different regimes for oil exploration and production such as the Production Sharing Agreement and Joint Venture and Concession Agreements. Moreover, the Petroleum Industry Act (PIA) restructures Nigeria’s institutional framework governing the oil & gas sector. It establishes the Nigerian Upstream Regulatory Commission to regulate technical and commercial aspects of upstream operations and creates a separate body for similar oversight of midstream and downstream activities while maintaining the Minister of Petroleum’s role in formulating and overseeing policy.

The Nigeria upstream (oil and gas) fiscal and regulatory guide presents essential information relating to the terms that govern investment into Nigeria’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic, and industry-specific variables, the report also analyses future trends for Nigeria’s upstream oil and gas investment climate.

Key Regimes ·       Production Sharing Agreement

·       Joint Venture and Concession Agreements

Enquire & Decide Discover the perfect solution for your business needs. Enquire now and let us help you make an informed decision before making a purchase.

Buy the Full Report for More Insights on Nigeria’s Upstream (Oil and Gas) Fiscal and Regulatory Policies, 2024

Download a Free Sample Report

Nigeria Regime Overview ─ Production Sharing Agreement

The production sharing agreements govern offshore licenses. A total royalty burden of more than 20% is levied on gross production based on the location of the field, the commodity, and the prevailing oil price, and Petroleum Profits Tax is payable at a rate of more than 40% following which costs are recoverable up to a limit of more than 70%. The remaining production is designated as profit oil and is shared between the licensee and the national oil company based on a rate-of-return mechanism.

Regime Flow Chart – Production Sharing Agreement

Regime Flow Chart – Production Sharing Agreement

Buy the Full Report for More Insights on the Fiscal Regime of Nigeria

Download a Free Sample Report

Nigeria Regime Overview ─ Joint Venture and Concession Agreements

Although in recent years PSAs and sole risk agreements have become the primary contract type offered, however, joint venture agreements have governed petroleum operations. Joint venture agreements share the same framework as royalty/tax agreements, which are used for sole risk operations and marginal field licenses.

Regime Flow Chart – Concession Agreements

Regime Flow Chart – Concession Agreements

Buy the Full Report for More Insights on the Fiscal Regime of Nigeria

Download a Free Sample Report

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Nigeria.
  • Assessment of the current fiscal regime’s state take and attractiveness to investors.
  • Charts illustrating the regime structure, and legal and institutional frameworks.
  • Detail on legal framework and governing bodies administering the industry.
  • Levels of upfront payments and taxation applicable to oil and gas production.
  • Information on the application of fiscal and regulatory terms to specific licenses.
  • Outlook on the future of fiscal and regulatory terms in Nigeria.

Reasons to Buy

  • Gain insights into the regulatory landscape: Get a comprehensive overview of the fiscal and regulatory environment.
  • Understand the impact on business operations: Learn how the regulatory burden affects the cost of doing business.
  • Assess risks and challenges: Identify the potential risks and challenges associated with operating in the country.

Nigerian National Petroleum Company Limited (NNPC Ltd)

Table of Contents

  • 1. Cost Recovery

    • 1.1. Regime Overview ─ Production Sharing Agreement
    • 1.2. Regime Overview – Joint Venture and Concession Agreements
    • 1.3. Timeline

  • 2. State Take Assessment
  • 3. Key Fiscal Terms – Production Sharing Agreements

    • 3.1. Bonuses and Fees
    • 3.2. Royalties
    • 3.3. Cost Recovery
    • 3.4. Profit Sharing
    • 3.5. Direct Taxation
    • 3.6. Deductions and Depreciation
    • 3.7. Indirect Taxation

  • 4. Key Fiscal Terms – Joint Venture, Sole Risk and Marginal Fields

    • 4.1. Fees, Levies and Bonuses
    • 4.2. Royalties
    • 4.3. Taxation
    • 4.4. Tax Incentives
    • 4.5. State Participation
    • 4.6. MoU Regime (JVs only)

  • 5. Regulation and Licensing

    • 5.1. Legal Framework
    • 5.2. Institutional Framework
    • 5.3. Licensing Process

  • 6. Appendix

    • 6.1. References

  • 7. About GlobalData
  • 8. Contact Us

Table

Table 1: Regime Overview: Production Sharing Agreements and Concession Agreements

Table 2: Regulatory Overview and Outlook

Table 3: Nigeria, Key Events Since Year 2000

Table 4: Nigeria, Rental fees by license and duration

Table 5: Nigeria, PSA, Minimum Signature Bonus By Terrain or Area (US$), 2005 Bid Round

Table 6: Nigeria, PSA, Required Production Bonus, OPL 905, 2007

Table 7: Nigeria, PSA, Required Production Bonus, OPL 245, 2003

Table 8: Nigeria, Liquid Royalty Rates (%) Under PIA, 2021 Onwards

Table 9: Nigeria, Gas And NGLs Royalty Rate (%) Under PIA, 2021 Onwards

Table 10: Nigeria, Liquid Royalty Rates (%) Based on Oil Price Under PIA, 2021 Onwards

Table 11: Nigeria, DOIBPSC Amendment, Royalty Rates By Terrain And Exploration Maturity, 2019

Table 12: Nigeria, DOIBPSC Amendment, Royalty Rates By Commodity Price, 2019

Table 13: Nigeria, PSA, Royalty Rates (%), 1999 DOIBPSC Decree and 2005 Model PSA

Table 14: Nigeria, PSAs, Onshore and Shallow Water Royalty Rates (%), Pre-2005

Table 15: Nigeria, PSA, Profit Sharing (%) Under PIA

Table 16: Nigeria, PSA, Profit Sharing Framework, 2005 Model PSA

Table 17: Nigeria, PSA, Profit Sharing Framework, Deepwater and Inland Basin, Pre-2005

Table 18: Nigeria, PSA, Profit Sharing Framework, Deepwater and Inland Basin, Pre-2005

Table 19: Nigeria, Hydrocarbon tax, PIA Converted or New licenses

Table 20: Nigeria, Capital Allowances Rates (%) Under PIA

Table 21: Nigeria, PSA, Production Allowance for New Leases Under PIA

Table 22: Nigeria, JV and Sole Risk, Royalty Rates (%) – Liquids

Table 23: Nigeria, JV and Sole Risk, Royalty Rates (%) – Gas

Table 24: Nigeria, Marginal Fields, Royalty Rates (%) – Gas

Table 25: Nigeria, Tax Inversion Operating Cost Thresholds (US$/bbl), 2000 MoU

Table 26: Nigeria, Guaranteed Profit Margin, Applicable Between US$15/bbl and US$19/bbl, 2000 MoU

Table 27: Nigeria, Guaranteed Profit Margin, Applicable Between US$12.50/bbl and US$23/bbl, 1991 MoU

Table 28: Nigeria, Guaranteed Profit Margin, Applicable Between US$12.50/bbl and US$23/bbl, 1986 MoU

Table 29: Nigeria, PSA, Work Program Commitments, Selected PSAs

Table 30: References

Figures

Figure 1: Regime Flow Chart – Production Sharing Agreement

Figure 2: Regime Flow Chart – Concession Agreements

Figure 3: Nigeria, Indicative NPV10/boe, IRR (%). Project returns by Regime and Resource Type

Figure 4: Nigeria, State Take Comparison. State-take by Regime and Resource Type

Figure 5: Nigeria, State Take, Price Sensitivity.

Figure 6: Nigeria, State Take Cost Sensitivity.

Figure 7: Nigeria, Legal Framework.

Figure 8: Nigeria, Institutional Framework

Frequently asked questions

Nigeria Upstream (Oil and Gas) Fiscal and Regulatory Guide, 2024 standard reports
Currency USD
$1,500

Can be used by individual purchaser only

$3,000

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

See what our customers are saying
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Nigeria Upstream (Oil and Gas) Fiscal and Regulatory Guide, 2024 in real time.

  • Access a live Nigeria Upstream (Oil and Gas) Fiscal and Regulatory Guide, 2024 dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.