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DPR begins review of gas production sharing contracts

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The Department of Petroleum Resources (DPR) has reviewed five terms of gas development under the Production Sharing Contracts (PSC) in the country.

The DPR Director, Sarki Auwalu, disclosed this during a public hearing organised by the National Assembly Joint Committee on Gas Resources and Petroleum Resources, Upstream and Downstream held on Monday in Abuja.

He said DPR had considered and reviewed five terms for gas development in PSC and these included duration, cost of gas, tax gas, royalty, and profit gas.

READ ALSO: Nigerian govt to reactivate moribund oil and gas facilities – DPR

Auwalu said: “These five terms, we believe when considered, will definitely make the industry robust and enable the provisions in the Petroleum Industry Bill (PIB) to adequately address all issues and concerns.”

He stressed that the first PSC as a business arrangement was signed in 1973 between the government and international oil companies with the absence of gas terms in the contract.

The DPR chief added that other agreements were signed in 1993 with oil majors and main indigenous companies.

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