Understanding the New PIA Fiscal System

Code Date Venue Fee ($)

Day 1: Introduction and Overview of Upstream Petroleum Contracts 

  • Brief Overview of the O&G Industry 

  • Oil and Gas Terminology 

  • The Legal Framework to Upstream Contracts 

  • Introduction to Contract Formation 

  • Key Oil and Gas Terminology 

  • Oil and Gas Industry Structure 

  • Relationship between Different Players in the Oil and Gas Industry 

  • Phases of the Oil and Gas Industry 

  • Oil and Gas Contract Fundamentals and Legal Principles 

Day 2: Contracting in The Upstream Sector: Ownership and Licensing 

  • Ownership and Exploitation of Reserves 

  • The ABCs of Petroleum Contracts: License-Concession Agreements, Joint Ventures, and Production-sharing Agreements 

  • Characteristics of Upstream Contracts 

  • Commercial Realities of the Oil and Gas Business 

  • Agreement with Resource Holders 

  • Ownership of Oil and Gas 

  • Risk Service Contracts (RSCs) 

  • Grant of Rights by Resource Holder 

  • Host Country's Legal and Regulatory Framework and Fiscal Regime - Stabilization 

  • Role of Host Government 

  • Key Issues in International Oil and Gas Contracts 

  • Negotiation Framework and Strategy - Objectives of Host Countries / NOCs and IOCs 

  • Host Government ‘s Role in Upstream (Exploration & Production (E&P)) Agreements 

  • Overview of Upstream Operations and E&P Agreements (types and trends by region) 

  • Key Differences between Production Sharing Contracts (PSCs), Concessions, Service Contracts and JV Contracts 

 

Day3:  Nigeria’s 1969 Act and Petroleum Profit Tax Act (PPT) 

  • Nigerian Modified Concessionary / JV System 

  • Nigerian 1993 & 2000 PSC System 

  • Deep offshore and Inland Basins Production Sharing Act 

  • Nigerian 2005 PSC System 

  • The Legal Framework of The Petroleum Industry Act 1969 and PPT Act. 

  • Royalty  

  • Education Tax 

  • Adjusted Profit 

  • Assessable Profit 

  • Chargeable Profit 

  • Petroleum Profit Tax (PPT) 

  • Investment Tax Allowances and Investment Tax Credit 

  • Production Sharing Contracts  

Day 4: The legal and fiscal framework of the Nigerian Petroleum Industry Act 2021 

  • Exploration license 

  • Petroleum Prospecting license (PPL) 

  • Petroleum Mining License (PML) 

  • Petroleum Host Community Development Fund 

  • Royalty based on production rate 

  • Royalty based on price inflation. 

  • Adjusted Profit Modelling 

  • Assessable Profit Modelling  

  • Chargeable Profit Modelling 

  • Cost Price Ratio 

  • Production Allowance 

  • Hydrocarbon Tax 

  • Company Income Tax  

  • Production Sharing Modelling  

 

Day 5: Project Performance under the new PIA 2021 

  • The behavior of the new PIA at low prices and low production rates 

  • The Impact of Nigerian Petroleum Industry Act 2021 on Project Profitability. 

  • The impact of the PIA2021 on the development of marginal fields  

  • The impact of the new PIA on both the government and contractor take 

  • The impact of the new PIA on the economic life of the fields.  

  • The impact of the new act on the booked reserves. 

  • The advantage and disadvantages of the PIA 2021 

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