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Nigeria sets new production terms

Nigeria’s Senate passed the Deep Offshore and Inland Basin Production Sharing Contracts (Amendment) Bill on 15 October, overhauling legislation dating back to the early 1990s, when the military government of the time offered attractive tax terms in an effort to open up new deep-water production. The bill introduces a new royalty system based on international oil price movements, replacing the previous mechanism where royalty payments were linked to the water depth and presumed cost of each field development.

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