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17 Pages

Nigeria's proposed fiscal policy puts ultra-high costs firmly in the firing line


Nigeria's proposed fiscal policy puts ultra-high costs firmly in the firing line

Report summary

After years of trying to pass the ill-fated Petroleum Industry Bill (PIB), the current administration has broken up the PIB and revised the fiscal proposals within a separate document: the National Petroleum Fiscal Policy. Wood Mackenzie's fiscal experts have engaged stakeholders on all sides of the debate. We bring you our in-depth economic analysis of the National Petroleum Fiscal Policy, blending it with our unique global perspective.

What's included?

This report includes 2 file(s)

  • Nigeria's proposed fiscal policy puts ultra-high costs firmly in the firing line PDF - 1.09 MB 17 Pages, 1 Tables, 18 Figures
  • Nigerias proposed fiscal policy puts ultra high-costs firmly in the firing line.xlsx XLSX - 618.14 KB

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

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 upstream commercial data and analysis.

  • Executive summary
  • Basis of analysis
  • NPFP principles and objectives
  • Comparison of the NPFP and current terms
    • Royalty
    • Taxes
    • Tax allowances and deductions
      • Production allowances are a positive, if you qualify...
      • ...but punitive limits on deductible costs are regressive
        • International Cost Price Ratio comparison
        • Costs are key in the NPFP
          • Gas costs will no longer be recoverable against oil revenues
          • Economic impact on current investors (fiscal disruption)
            • Concessions
            • PSCs
            • Pre-FID projects
              • Breakeven prices of pre-FID deepwater projects (NPV15)
            • Impact on government revenues
          • Economic impact on new investment (fiscal evolution)
            • New small onshore oil discoveries
            • New shelf oil discoveries
            • New deepwater oil discoveries
            • New onshore wet gas discovery
          • Will the NPFP become law?
          • Conclusion

In this report there are 19 tables or charts, including:

  • Executive summary
  • Basis of analysis
  • NPFP principles and objectives
    • NPFP aims and instruments
  • Comparison of the NPFP and current terms
    • Nigeria's proposed fiscal policy puts ultra-high costs firmly in the firing line: Image 2
    • Forecast of average realised oil royalty (post-2017)
    • Current and NPFP tax rates
    • Forecast average realised tax rates (post-2017)
    • Simplified illustration of NHT calculation, TIP and production allowance for new deepwater production
    • Nigeria's proposed fiscal policy puts ultra-high costs firmly in the firing line: Image 6
    • Investor value change by contract type
    • NNPC-Majors JVs (NPV10)
    • Top ten indigenous companies (NPV10)
    • Deepwater PSC value change (NPV10)
    • Nigeria's proposed fiscal policy puts ultra-high costs firmly in the firing line: Image 11
    • Change in annual government revenues
    • Split of the barrel
    • Key metrics for new investment: onshore oil
    • Key metrics for new investment: shelf oil
    • Key metrics for new investment: deepwater oil
    • Key metrics for new investment: onshore wet gas
    • Value and scale of fiscal changes in top 20 IOC jurisdictions (NPV10, base case)
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Department : .............
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