The federal government has given International Oil Companies (IOCs) operating in Nigeria’s deep offshore and inland basin a 14-day ultimatum to pay all outstanding revenues on Production Sharing Contracts (PSCs), THISDAY has learnt.
The government said the revenues are in compliance with the Supreme Court judgment last October, which noted that the IOCs are in default of adjusting the revenue accruals in accordance with the provisions of section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act, Cap D3, Laws of the Federation, 2004.
In one of the letters written by the federal government’s consultants/recovery agents, Trobell International, directing Statoil Nigeria Limited to pay $5.5 billion, the government threatened that any IOC, which refuses to pay would have its PSC terminated.
The letter cited by THISDAY, was titled, ‘Outstanding Revenue on OML 128 Pursuant to section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act, Cap D3, Laws of the Federation, 2004’. Read more