Comparative Assessment of Petroleum Sharing Contracts in Nigeria

Soon Nigeria will pass controversial oil and gas legislation into law, the new bill has been perceived differently by different stakeholders worldwide. Subsequently, this research studied the proposed Petroleum Industry Bill (PIB) and compared its proposed contentious PSC’s fiscal terms with that of Indonesia, to evaluate its competitiveness and impact on the final government/contractor take and to come up with a proven idea and insight about the PSC’s terms in PIB. Empirical data was used in acquiring information on the two countries’ fiscal regimes. Similarly, a sample of oil exploration and production project was assumed using similar data for the two countries, where the proposed fiscal terms in Nigeria were applied to identify its impact on the final government and contractor take at the end of the project. On the other hand, Explanatory and descriptive approach was applied in analysing and comparing the PSC’s fiscal regimes and how it affect the final government/contractor take in the two countries. The comparison and analysis undertaken has exposed the fair nature of the new PSC proposal in Nigerian PIB and identified areas of revisiting in the bill