DPR reapraises five pscs for gas development

The Department of Petroleum Resources (DPR) has reviewed five terms for gas development under the Production Sharing Contracts (PSC) in the Country. Sarki Auwalu, the Chief Executive Officer, revealed this during a Public hearing at the National Assembly organised by the Joint Committee on Gas Resources and Petroleum Resources, Upstream and Downstream, in Abuja, on Monday, the 8th of March, 2021.

The hearing was on the Topic: “Inclusion of Gas Terms in Production Sharing Contracts by the Nigerian National Petroleum Corporation (NNPC).”

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

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

He explained 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.

According to him, others were signed in 1993 with oil majors, and 1998 with main indigenous companies, while 2005 and 2007 served contracting documents between NNPC and their contractors.