The new royalty regime, enacted as part of legislation concerning deep offshore and inland basis production-sharing contracts, specifies a baseline royalty of 10% for crude oil and condensates that are produced in the deep offshore (greater than 200 meter water depth) and 7.5% for the “frontier and inland basin.”
In addition to the baseline royalty, a royalty based on the applicable price of crude oil, condensate and natural gas will apply, but only when the price exceeds $20 per barrel.
Read a December 2019 report prepared by the KPMG member firm in Nigeria
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