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Browsing Art by Author "Adamade, Akpo Agathachriste"
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Item Open Access ANALYSIS OF THE DEEP OFFSHORE INLAND BASIN PRODUCTION SHARING CONTRACT ACT 2019(Department of Public and International Law, Nasarawa State University Keffi, 2022-12-12) Iyadah, John Viko; Adamade, Akpo AgathachristeABSTRACT The Deep Offshore Inland Basin Production Sharing Contracts (DOIBPSC) Act was enacted in 1999 as a Decree and given retroactive applicability dating back to 1993 as the legal framework for the exploitation and exploration of hydrocarbons in the deep offshore in Nigeria. The Federal Government of Nigeria (FGN) passed the 1993 Act to encourage upstream investors to put risk capital in the deep offshore of Nigeria by designing the provisions of the Act to enshrine into law the fiscal incentives given to exploration companies operating under production sharing contracts in the sector, which at the time was uncharted territory. In 2019, theFGN moved to amend the DOIBPSC Act 1993 to significantly increase Nigeria's earnings from oil exploration activities in the deep offshore and to create a fair and equitable share of income derived from its natural resources. This work analysed the amendment made to the Deep Offshore Inland Basin Production Sharing Act 1993, by highlighting the differences between the 1993 Act and the 2019 amended version, its impact on the revenue bases of the Federal Government of Nigeria, and compares its competitiveness with regimes of other oil producing nations in ' the region. The work found that the major difference between the 1993 Act and the 2019 Act as amended were changes made to the fiscal regimes by the introduction of new/increased royalty rates while the immediate impact of the amendment exercise was found to include an improved economic benefit to the earnings of the FGN and an increased cost to operators(IOCs) in the sector. This article adopted a mixed research methodology approach, employing both the doctrinal and non-doctrinal/comparative legal research methods as statutory enactments, case law, books and materials containing comparisms between different jurisdictions formed part of the sources of information that made up this dissertation work. Recommendations for a more holistic review of the legal, regulatory and fiscal framework for the entire industry through the quick passage of the Petroleum Industry Bill to promote stability in the sector, application of cost cutting initiatives, framing and capacity building of an indigenous workforce were proffered. In conclusion, the article recommends that it is imperative that in attaining its set objective, the FGN must provide a stable and efficient legal, contractual and administrative framework for the exploitation and exploration of hydrocarbons in the deep offshore, as anything else would constitute a significant risk factor to the existing and potential investors and deter investments and development of the sector.