Nigeria upstream summary Report

Country Report 02 March 2023

Get this report

$9,450

You can pay by card or invoice

Share link

First name
Last name
Job Title
Company
Email
Telephone

Country

Message

Consent

Please keep me informed about Wood Mackenzie products, services and events.

Submit Category

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

Report summary

Nigeria is the largest oil producer in Africa. Production comes from the Niger Delta: 75,000 square kilometres of onshore swamp and shallow water, leading to a deepwater frontier up to 200 kilometres offshore. Nigeria produces high quality sweet crude, from the prolific Tertiary, Agbada Formation. Reservoirs tend to be small, with hundreds of small deposits throughout the delta. Based on commercial remaining reserves, the Niger Delta is approximately three-quarters of the way through its ...

Executive summary
Key facts
Location maps
Key companies
- The Majors
- Indigenous companies
- M&A
Geology
- Introduction
- Niger Delta Basin
  - Stratigraphy
  - Source rocks
  - Reservoir rocks
  - Trapping mechanism
- Keta-Togo-Benin basin
  - Reservoirs, traps and seals
  - Source rocks
- Benue Trough basin
  - Anambra sub-basin
  - Bida sub-basin
- East Niger Rift basin
- Illumeden basin
Exploration
- Licensing
  - Early exploration
  - 1990s
  - 2000 licence round
  - 2005 licence round
  - 2006 licence round
  - 2007 licence round
- 2020 Marginal Field Bid Round
- 2022 Deepwater Mini-Bid Round
- Drilling
  - Drilling activity
  - Historical exploration
  - Success rates
Reserves and resources
Production
- Oil/Liquids
  - Production outlook
- Gas
  - Flaring
Infrastructure
- Oil infrastructure
- Terminals
- Oil products
- Gas infrastructure
Costs
- Introduction
  - Historical NNPC funding constraints
  - 2017-2023 NNPC funding model
  - Post-PIA NNPC Limited
- Capital costs
  - Capital expenditure by location
- Operating costs
  - Operating expenditure by location
Policy and regulation
- Key legislation
- The Petroleum Industry Act (PIA) 2021
  - The PIA sets out new governmental, regulatory, fiscal and host community structures for the petroleum sector.
  - The following laws are saved until the termination or expiration of all OPLs and OMLs.
  - From the effective date of the PIA (August 2021), the following laws and regulations are repealed:
- Regulatory body
- State oil company
  - NNPC Limited
  - NNPC
- State participation
- Licensing
  - Petroleum Exploration Licence (PEL)
  - Petroleum Prospecting Licence (PPL)
  - Petroleum Mining Lease (PML)
- Licences which are not converted to PELs, PPLs and PMLs shall be retained until relinquishment, expiry or renewal. This applies to:
  - Oil Prospecting Licence (OPL)
  - Oil Mining Licence (OML)
  - PIA relinquishment upon renewal or conversion of an OML
Fiscal terms
- Overview
- Upstream
  - Concessions
  - Production Sharing Contracts
  - Profit Sharing Contracts
  - Indigenous Sole Risk Contracts
  - Risk Service Contracts
- Mid/Downstream
- Current fiscal terms
- PIA fiscal terms
  - The holder of an existing oil prospecting licence (OPL) or oil mining leases (OML) may enter into a voluntary conversion contract. Such licensees shall benefit from converted fiscal terms, but:
- PIA production royalties
- PIA price royalty
- Hydrocarbon Tax
- Companies Income Tax
  - Capital allowances
  - Liquids production allowances
- Cost Price Ratio (CPR)
  - Renegotiated PSCs
  - New PSCs
- Fiscal ringfencing
- Joint Venture Concessions
  - State equity participation
  - Carry & Reimbursement
  - Signature bonus
  - Renewal bonus
  - Production bonus
  - Area rentals
  - Training fees
  - Indirect taxes
- Royalties for concessions not converted to PIA terms
  - Marginal field royalties
  - Export duty
  - Environmental / CO2 taxes
  - Domestic Market Obligation (DMO)
  - Contractor revenue entitlement
  - Liquids pricing
  - Gas pricing
  - Petroleum Profits Tax
  - Taxable Income
  - Investment Uplift/Credit
  - Gas
  - Fiscal/Contractual Consolidation
  - Dividend Withholding Tax
  - Other Taxes
  - Pioneer status
- Production Sharing Contracts (1993)
  - State equity participation
  - Signature bonuses
  - Production bonuses
  - Area rentals
  - Training fees
  - Other bonuses & fees
  - Indirect taxes
  - Royalty
  - Export duty
  - Environmental / CO2 taxes
  - Domestic Market Obligation (DMO)
  - Contractor revenue entitlement
  - Liquids Pricing
  - Natural Gas Pricing
  - PSC cost recovery
  - PSC profit sharing
  - Corporate (or Petroleum) Income Tax
  - Fiscal/Contractual Consolidation
  - Dividend Withholding Tax
  - Other Taxes
- Production Sharing Contracts (2005, 2006 & 2007 bid rounds)
  - State equity participation
  - Signature bonuses
  - Production Bonuses
  - Area rentals
  - Training fees
  - Other bonuses & fees
  - Indirect taxes
  - Royalty
  - Export duty
  - Environmental/CO2 taxes
  - Domestic Market Obligation (DMO)
  - Contractor revenue entitlement
  - Liquids Pricing
  - Natural Gas Pricing
  - PSC cost recovery
  - Cost carry forward
  - PSC profit sharing
  - Taxable Income
  - Corporate (or Petroleum) Income Tax
  - Fiscal/Contractual Consolidation
  - Dividend Withholding Tax
  - Other Taxes