Deep Offshore and Inland Basin Production Sharing Contract Act (Amendment) Bill

An Act amends the production sharing contract terms for deep offshore oil and gas blocks. It updates the fiscal arrangements to ensure Nigeria receives a more equitable share of revenue. The changes optimize the nation's revenue generation from its deep offshore petroleum resources.

Deep Offshore and Inland Basin Production Sharing Contract Act (Amendment) Bill Policy Overview

What Is This Policy?

An amendment to update the fiscal terms and production sharing arrangements for deep offshore oil and gas blocks, following the landmark 2020 amendment, to further optimise Nigeria's revenue from its deep offshore petroleum resources.

Who Does It Target?

International oil companies (IOCs) operating deep offshore blocks Nigerian National Petroleum Corporation Limited (NNPCL) Federal Inland Revenue Service (FIRS) and the Petroleum Profit Tax administration Federal Government revenue planning and the Sovereign Wealth Fund

What Does It Aim to Achieve?

Ensure Nigeria receives a more equitable share of revenue from deep offshore oil production Update fiscal terms to reflect current oil price realities and industry economics Incentivise new investment in undeveloped deep offshore acreages Align deep offshore fiscal terms with the broader Petroleum Industry Act 2021 framework

Key Features

Current Status

Funding: N/A — fiscal regulation; revenues flow to the Federation Account

How to Access

IOCs and potential investors engage NNPCL and the upstream petroleum regulator (NUPRC) for block acquisition. Requirements: Prequalification with NUPRC for deep offshore block operations Demonstrated technical and financial capacity for deep offshore development Compliance with Petroleum Industry Act 2021 host community obligations Application method: NUPRC: www.nuprc.gov.ng | NNPCL: www.nnpcgroup.com

Important Terms

Amended fiscal terms apply prospectively to new and renegotiated PSCs Existing PSC investors have right to negotiate transition arrangements within 12 months of enactment Price-triggered provisions activate when Brent crude exceeds $50/barrel benchmark

Impact & Metrics

The 2020 Deep Offshore amendment generated an additional $62 billion in government revenue projections over 10 years; updated fiscal terms could yield a further $15–20 billion in incremental revenue.

Official Resources

Website: www.nuprc.gov.ng | www.finance.gov.ng Contact: NUPRC — [email protected] | NNPCL — [email protected] Federal Republic of Nigeria — Policy Summary Document | March 2026

Legal Framework

Deep Offshore and Inland Basin Production Sharing Contract Act (principal Act being amended); Petroleum Industry Act 2021; Petroleum Profits Tax Act; Companies Income Tax Act; Constitution of the Federal Republic of Nigeria 1999 (Section 44(3))