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FG, Oil Companies to Negotiate Arrears of PSC Obligations

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The federal government and international oil companies operating in the country are to calculate and negotiate arrears of contractual obligations to the latter and the benefitting states, arising from last week’s decision of the Supreme Court over the sharing of crude oil proceeds whenever its price is above $20 per barrel, THISDAY has learnt.

THISDAY has also gathered that the federal government opted for an out-of-court settlement in the suit filed by three oil-producing states in the Niger Delta, on the interpretation of Section 16(1) of the Deep Offshore and Inland Basin PSC Act, because it knew it had a bad case.

The Supreme Court in a landmark judgment last Wednesday had ordered the federal government to adjust its share of proceeds from the sale of crude oil whenever the price exceeds $20 per barrel.

The order, which was made in a ruling in a suit filed by the Attorneys-General of Rivers, Bayelsa and Akwa Ibom States, was a fallout of the terms of settlement between the Attorney General of the Federation (AGF) and the plaintiffs.

THISDAY, October 22, 2018

 

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