President Muhammadu Buhari has on Monday, November 4, 2019, assented to the amendment bill on Deep Offshore (and Inland Basin Production Sharing Contract) Act.
This development is coming to the media while the President is on a private visit to London, United Kingdom.
Making this known via his official Twitter handle, the President described the signing as a landmark moment for Nigeria.
Recall that the Deep Offshore (and Inland Basin Production Sharing Contract) Act was recently passed into law by the National Assembly. President Buhari in his tweet appreciated the lawmakers for their cooperation in making the ‘long overdue’ amendment possible.
He added that during his 2020 Budget Presentation Speech before the National Assembly in October he had earlier highlighted the need to urgently review the fiscal terms for deep offshore oil fields, to reflect current realities and to ensure increased government revenues.
President Buhari is expected back in the country on November 17.
The Senate passed the Deep Offshore and Inland Basin Production Sharing Contract Act 2004 (Amendment) Bill, 2019 (the Bill) in October 2019.
The Bill which aims to amend the provisions of the Deep Offshore and Inland Basin Production Sharing Contract Act 2004 (DOIBPSCA or the Act) also aims to shore up Nigeria’s revenue earnings.
DOIBPSCA regulates the operations of oil and gas companies operating under production sharing contracts (PSCs) in the Deep Offshore and Inland Basin.
The Act gives effect to certain incentives (such as lower royalty and tax rates etc.) granted to oil and gas companies operating under PSCs in the Deep Offshore and Inland Basin areas of Nigeria.