The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, on Tuesday said the country had lost a lot of money to Production Sharing Contracts (PSC) entered into with oil companies in the past, The Punch reports.
Kachikwu said the terms of the contracts would change to enable the Federal Government to get more from oil production in the country. The minister, who stated this in Lagos during a visit to the Egina Floating Production, Storage and Offloading vessel at the LADOL Free Zone, said; “We are not as a country very impressed with a lot of the PSCs that we have put together. We lose a lot of money in the process.”
He said looking at one field, he felt very pained that no single royalty was paid for one reason or the other. The minister however stated; “Those kinds of things will not happen anymore. So the terms will change; the basis upon which we proceed will change. But Nigeria will continue to be a prolific economic return model for any country in the world in terms of oil production.”