Ejiofor Alike in Lagos and Kasim Sumaina in Abuja with agency reports
The federal government has begun renegotiating Production Sharing Contracts (PSC) on deep offshore oil blocks with Royal Dutch Shell, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said.
A report yesterday by Financial Times quoted Kachikwu as saying that Shell’s current PSC would expire in 2023, while the PSCs of other international oil companies (IOCs) would expire in 2028.
According to him, when negotiated, the Shell’s new PSC model will then be the basis of the negotiation of other PSCs.
The opening of renegotiation between the federal government and Shell came against the backdrop of a judgment of the Supreme Court, which had last year decided on a consent judgment brought before it by the three Niger Delta states – Akwa Ibom, Bayelsa and Rivers.
The judgment noted that the IOCs operating in Nigeria’s deep offshore and inland…