{"id":1877,"date":"2019-10-02T00:00:00","date_gmt":"2019-10-02T00:00:00","guid":{"rendered":"https:\/\/placng.org\/i\/senate-to-amend-the-production-sharing-contract-act-2004\/"},"modified":"2019-10-02T00:00:00","modified_gmt":"2019-10-02T00:00:00","slug":"senate-to-amend-the-production-sharing-contract-act-2004","status":"publish","type":"post","link":"https:\/\/placng.org\/i\/senate-to-amend-the-production-sharing-contract-act-2004\/","title":{"rendered":"Senate To Amend The Production Sharing Contract Act, 2004"},"content":{"rendered":"\n<p>The Senate\nat its plenary session on Wednesday, 2 October 2019, resolved to amend the\nProduction Sharing Contract (PSC) Act, 2004 in its effort to recover revenues\naccruable to the Federal Government and increase the revenue base available to\nfund subsequent budgets.<\/p>\n\n\n\n<p>Leading\nthe debate on the motion titled \u201c<em>Urgent Need to Review and Recover\nAdditional Revenues Accruable to the Government of the Federation from\nProduction Contracts pursuant to Section 16 of the Deep Offshore and Inland\nBasin Production Sharing Contract Act and Amend the Extant Act\u201d,<\/em> Sen.\nIfeanyi Ubah (YPP: Anambra) stated that the PSC is a contractual arrangement\nfor petroleum exploration and production where the State engages contractors to\nprovide technical and financial services for operations &nbsp;in return for an agreed share.<\/p>\n\n\n\n<p>He also\ncited <strong>Section 16<\/strong> of the <strong>PSC Act, 2004<\/strong> which provides that:<\/p>\n\n\n\n<p>\u201c<em>Where\nthe price of crude oil exceeds US $20 per barrel, the PSC Act will be reviewed\nto ensure that the share of the Federal Government of Nigeria (FGN) in the\nadditional revenue is adjusted to the extent that the PSCs shall be\neconomically beneficial to the FGN\u201d<\/em><\/p>\n\n\n\n<p>Sen.\nUbah noted that although the PSC Act 2004 allows for periodic review of its\nprovisions to ensure that the Federal government derives maximum and equitable\nbenefits, failure to amend the said Act had resulted in the loss of revenues\namounting to the sum of $21billion. He further informed lawmakers that the PSC\nAct is subject to review when the following conditions occur:<\/p>\n\n\n\n<ul><li>When\nthe price of crude oil exceeds US $20 per barrel;<\/li><li>After\n15 years of the Act\u2019s commencement date which was in 1993 (26 years ago) following\nwhich the first review should have been in 2008; and <\/li><li>Every 5\nyears thereafter.<\/li><\/ul>\n\n\n\n<p>The\nlawmaker also expressed concern that the consequences of past failures to amend\nrelevant provisions of the Act had led to inequitable terms of oil production\nsharing and significantly lower revenue contributions for the country. <\/p>\n\n\n\n<p>The\nSenate also mandated its Committees on Petroleum Resources (Upstream), Finance\nand Judiciary, Human Rights and Legal Matters to investigate the reasons why\npast Assemblies had failed to review salient provisions of the PSC Act.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Senate at its plenary session on Wednesday, 2 October 2019, resolved to amend the Production Sharing Contract (PSC) Act, 2004 in its effort to recover revenues accruable to the Federal Government and increase the revenue base available to fund subsequent budgets. Leading the debate on the motion titled \u201cUrgent Need to Review and Recover [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1878,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":""},"categories":[24],"tags":[],"acf":[],"author_meta":{"display_name":"PLAC","author_link":"https:\/\/placng.org\/i\/author\/olumide-adebayo\/"},"featured_img":"https:\/\/placng.org\/i\/wp-content\/uploads\/2019\/12\/senate-confirms-all-43-ministerial-nominees-300x156.png","coauthors":[],"tax_additional":{"categories":{"linked":["<a href=\"https:\/\/placng.org\/i\/category\/news\/\" class=\"advgb-post-tax-term\">News<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">News<\/span>"]}},"comment_count":"0","relative_dates":{"created":"Posted 7 years ago","modified":"Updated 7 years ago"},"absolute_dates":{"created":"Posted on October 2, 2019","modified":"Updated on October 2, 2019"},"absolute_dates_time":{"created":"Posted on October 2, 2019 12:00 am","modified":"Updated on October 2, 2019 12:00 am"},"featured_img_caption":"Senate Set to Commence Review of Constitution Alteration Bills","series_order":"","_links":{"self":[{"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/posts\/1877"}],"collection":[{"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/comments?post=1877"}],"version-history":[{"count":0,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/posts\/1877\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/media\/1878"}],"wp:attachment":[{"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/media?parent=1877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/categories?post=1877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/tags?post=1877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}