Thread by @nigeriaeiti

HUGE REVENUE LOSSES TO THE FEDERATION: Did You Know? Nigeria Lost At Least $16bn over a 10-year period (between 2008 & 2017) due to Non-Review Of 1993 PSCs
goo.gl/mmMNGF.

Peep: @Open_Oil @pdfnigeria @simonkolawole @DrJoeAbah @Omojuwa @BBoason @seunonigbinde @HamzyCODE

This is a a quantitative study by NEITI with support from @Open_Oil. This study indicates that the losses could be up to $28 billion if, after the review, the Federation were allowed to share profit oil from two additional licenses.

#1993PSCs.

@Johannxs @Mark_EITI @Brian4Dev.

By virtue of the provisions in Section 16 of the law governing the PSCs, the PSC contracts ought to have been reviewed first, in 2004 (when real oil prices exceeded $20 per barrel).

#1993PSCs.

....; and secondly on 1st January 2008 (15 years from 1st January 1993). The $20-trigger was the subject of the recent ruling by the Supreme Court, and is thus not covered by this study.

#1993PSCs.

#1993PSCs: The Steep Cost of Inaction.
Access Document here -goo.gl/Ywzcg2.

@EITIorg @pdfnigeria @Omojuwa @BBoason @Mr_JAGs @Ayourb @naijama @teewai_toyin @otiveigbuzor @Johannxs @PWYPNigeria.

#1993PSCs: @IbeKachikwu.

#1993PSCS.

#1993PSCs: Annual production from JVs and PSCs.
Between 1998 and 2005, total production through PSCs was below 100,000,000 barrels per year while JVs consistently produced over 650,000,000 barrels per year.

A LITTLE BACKGROUND: At inception in 1993, the #1993PSC terms were drawn up to incentivize and attract oil and gas companies to invest in the exploration and production of offshore fields considering the risks involved coupled with low oil prices....

....Thus the PSC contracts were supposedly more beneficial to the companies. However, the Law anticipates that the companies would have recouped their investments when oil price increases and after many years of operations, hence the two trigger clauses in the Act.

Since the Supreme Court judgement has addressed the condition for the 1st review, this 2nd review was the focus of NEITI’s Policy Brief.According to NEITI, this 2nd review should have happened in 2008 & informed why it chose 2008 as start date for commencement of estimated losses

#1993PSC: Here is a link goo.gl/NSF5mu to the Excel files of the PSC Financial Modelling.

Once again, read the actual smart document here goo.gl/Ywzcg2, "1993 PSCs: The Steep Cost of Inaction"