Insight
Economic impact of Nigeria's proposed fiscal changes
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Wood Mackenzie has quantified the impact of the Petroleum Industry Bill that was put before the National Assembly in July 2012. Using the proposed upstream fiscal changes detailed in the PIB, and proposed royalties that are separate to the PIB, our analysis indicates the following: •For small E&P players in Nigeria, the proposed changes are a positive step. The availability of production allowances would provide a welcome boost for them, and profitability increases under the proposed,
Table of contents
- Executive Summary
- Introduction
-
Onshore and Shallow Water Concessions
- JV Oil
- Non-JV Onshore Oil
- Gas Sector
-
What about the deepwater sector?
- Producing PSCs and PSAs
- Undeveloped deepwater projects
- Impact of the changes on deepwater corporate value
- Impact of the PIB on deepwater investments and production
- Impact of the PIB on deepwater Government share
- Impact on Government free cash flow from the deepwater sector
-
Economic Modelling
- Assumptions & Definitions
- Model Field Assumptions
-
Fiscal changes proposed in the PIB
- Nigerian Hydrocarbon Tax
- Companies Income Tax
- Production allowances
- Petroleum Host Communities Fund (PHCF)
-
Fiscal changes outwith the PIB
- Royalties
- Production Sharing Contracts (PSCs)
Tables and charts
This report includes the following images and tables:
- Comparison of NPV10 and IRR for a 300 bcf onshore dry gas field across selected regimes
- NPV10 of model onshore gas fields in a JV with NNPC
- NPV10 of model shallow water gas fields in a JV with NNPC
- Gov. Share in a new onshore JV gas field
- Deepwater projects sanctioned in Sub-Sahara Africa in the last five years
- PIB impact on RemPV10 of deepwater players using a 15% hurdle rate for new projects*
- PIB Impact on deepwater investments and liquids production using a 15% hurdle rate for new projects
- Rem. Gov. Share in producing deepwater fields
- Gov. Share in undeveloped deepwater fields
- International comparison of Government Share (NPV10) under deepwater fiscal regimes*
- Government free cash flow from deepwater, excluding future projects with IRR <15%
- PIB impact on a new onshore field in a JV
- 11 more item(s)...
What's included
This report contains:
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