Country report
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14 Pages

Nigeria upstream fiscal summary

Nigeria upstream fiscal summary

Report summary

In 2008, the Government published a draft Petroleum Industry Bill (PIB) proposing fundamental reforms for the industry. Most controversially, it proposes to increase Government Share on all deepwater oil and gas projects. However, after four years, the PIB has not yet passed into law and it is most likely to be delayed until late 2012 at the earliest. Only then will the impact on the industry be clear. This uncertainty has contributed to a downturn in deepwater E&A activity and project...

What's included?

This report includes 1 file(s)

  • Nigeria upstream fiscal summary PDF - 394.43 KB 14 Pages, 25 Tables, 11 Figures


Volatility in oil markets has led players in the upstream oil and gas industry to focus on reducing capital spend and operating costs. At the same time, governments need to review fiscal terms to maintain attractiveness and investment.

This country report gives an overview of the key fiscal issues for this country. If you’re interested in identifying and assessing upstream investment and expansion opportunities, this upstream fiscal summary report is your definitive commercial guide.

Potential investors, governments and companies in the oil and gas sector can use it to gain a better understanding of the critical issues for development opportunities in this country.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research. Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in commercial data and analysis.

  • Executive summary
  • Current licence, equity and fiscal terms
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Royalty
      • PSC cost recovery
      • Income tax
        • Petroleum profits tax
        • Education tax
        • Corporate income tax
      • PSC profit sharing
      • Product pricing
  • Fiscal stability
    • Recent history of fiscal changes
    • Stability provisions
  • Economic analysis
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
    • Progressivity
    • Fiscal deterrence

In this report there are 36 tables or charts, including:

  • Executive summary
    • Revenue flowchart: Nigeria PSC
  • Current licence, equity and fiscal terms
    • Bonuses, rentals and fees
    • Indirect taxes
    • Current licence, equity and fiscal terms: Table 3
    • Current licence, equity and fiscal terms: Table 4
    • Current licence, equity and fiscal terms: Table 5
    • Current licence, equity and fiscal terms: Table 6
    • Current licence, equity and fiscal terms: Table 7
    • Current licence, equity and fiscal terms: Table 8
    • Current licence, equity and fiscal terms: Table 9
    • Current licence, equity and fiscal terms: Table 10
    • Effective contractor profit share - oil
    • Summary of modelled terms
    • Current licence, equity and fiscal terms: Table 12
  • Fiscal stability
    • Fiscal stability: Image 1
    • Fiscal stability: Table 1
  • Economic analysis
    • Economic analysis: Image 1
    • Economic analysis: Image 2
    • Economic analysis: Image 3
    • Share of profit - gas
    • Effective royalty rate and minimum state share
    • Economic analysis: Table 2
    • Economic analysis: Table 3
    • Economic analysis: Table 4
    • Economic analysis: Table 5
    • Economic analysis: Table 6
    • Maximum government share and maximum state share
    • Economic analysis: Table 8
    • Economic analysis: Table 9
    • Economic analysis: Table 10
    • Economic analysis: Table 11
    • Economic analysis: Table 12
    • State share versus Pre-Share IRR - oil
    • State share versus Pre-Share IRR - gas
    • Investor IRR versus Pre-Share IRR - oil
    • Investor IRR versus Pre-Share IRR - gas
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