At the request of the International Oil Companies (IOCs), the federal government has agreed to lower the deep-water fees and other taxes described in the Petroleum Industry Act (PIB), with deep-water fees being reduced from 7.5% to 5% and the level of production being increased to 50,000 bpd by 15,000 bpd.
Gail Anderson, director of research at Wood Mackenzie, noted that the bill’s changes “show that the government is listening. They recognize the need to attract investment not only in the Nigerian context, but worldwide in the energy transition. Competition is getting more intense and this is a step in the right direction to attract and attract investment. ”
A Reuters report suggested that the adjustment should also move the assets of the Nigerian National Petroleum Corporation (NNPC) to a limited liability company to allow the oil companies to collect their debts owed by the NNPC.