After much expectation and delay, the new Hydrocarbon Code was finally ratified by parliament on 12 October 2016. Minimum taxation levels are tough, but our initial assessment suggests they will be an improvement on the majority of existing production sharing contracts (PSCs). The new terms will not be retroactive. The Code re-affirms the central role of the state and, indirectly, the national oil company SNPC in the upstream sector. Local content clauses have also been strengthened to help grow the indigenous oil and gas industry. On the plus side, the document provides much needed clarity on what future contractual conditions will look like, as well as a regulatory framework to support the ongoing licensing round. While initial indications are that the new terms could be attractive, they will ultimately be determined by negotiation or competitive bidding.