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Deep Offshore and Inland Basin Production Sharing Contracts Act

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DEEP OFFSHORE AND INLAND BASIN PRODUCTION SHARING CONTRACTS ACT

ARRANGEMENT OF SECTIONS

SECTION

1.            Production sharing contracts.

2.            Duration of oil prospecting licence.

3.            Determination of petroleum profits tax.

4.            Determination of investment tax credit and investment tax allowance.

5.            Royalty payable in respect of deep offshore production sharing contracts.

6.            Computation of petroleum profit tax.

7.            Allocation of royalty oil.

8.            Allocation of cost oil.

9.            Allocation of tax oil.

10.          Allocation of profit oil.

11.          Payment of royalty.

12.          Chargeable tax on petroleum operations.

13.          Use of realisable price in determining royalty and petroleum profit tax in respect of crude oil, etc.

14.          Submission of receipts.

15.          Adaptation of laws.

16.          Periodic review.

17.          Interpretation.

18.          Short title.

DEEP OFFSHORE AND INLAND BASIN PRODUCTION SHARING

CONTRACTS ACT

An Act to, among other things, give effect to certain fiscal incentives given to the oil and gas companies operating in the Deep Offshore and Inland Basin areas under production sharing contracts between the Nigerian National Petroleum Corporation or other companies holding oil prospecting licenses or oil mining leases and various petroleum exploration and production companies.

[1999 No.9.]

[1st January, 1993]

[Commencement.]

1.            Production sharing contracts

Notwithstanding anything to the contrary contained in any other enactment or law, the provisions of this Act shall apply to all production sharing contracts as defined in section 17 of this Act.

2. Duration of oil prospecting licences

The duration of an oil prospecting licence relating to production sharing contracts in the Deep Offshore and Inland Basin shall be determined by the Minister and shall be for a minimum period of five years and an aggregate period of ten years.

3.            Determination of petroleum profit tax

(1) The petroleum profits tax payable under a production sharing contract shall be determined in accordance with the Petroleum Profits Tax Act: Provided that the petroleum profits tax applicable to the contract area as defined in the production sharing contracts shall be 50 per cent flat rate of chargeable profits for the duration of the production sharing contracts.

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