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Nigeria: Court decisions concerning drilling rigs and vessels

Nigeria: Court decisions, drilling rigs and vessels

Courts in Nigeria this summer issued judgments in cases concerning the taxation of drilling rigs and vessels used with respect to oil and gas production activities.


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  • A June 2019 judgment from the Court of Appeal (sitting in Lagos) held that drilling rigs are not vessels within the meaning of the Coastal and Inland Shipping (Cabotage) Act and are, therefore, not subject to a 2% surcharge (tax levy) on payments under the drilling contracts.
  • A June 2019 judgment of the Federal High Court held that a “drill ship” was a vessel used solely for marine navigation, carriage of workers and operational equipment, and the storage and transportation of oil and gas products.

Read an August 2019 report prepared by the KPMG member firm in Nigeria

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