Nigeria's oil and gas production structure is split between joint ventures onshore and in shallow water and the PSCs in deepwater offshore. Deepwater PSCs currently account for about 40% of Nigeria’s oil production (from 0% in 2004)
Pros - Increase in Govt Revenue. Govt could earn anywhere from $500m - $1Billion extra revenue with this amendment. This is factored into the 2020 Budget.
Cons - It could lead to reduction in investment in deepwater exploration.