Overview

The document is a set of regulations enacted under the Petroleum Act of Nigeria, specifically the 'Deep Water Block Allocations to Companies (Back-in-Rights) Regulations S. I. 7 2003'. Signed by President Olusegun Obasanjo as Minister of Petroleum Resources, these regulations came into effect on 5th July 2003. They apply to oil prospecting licences (OPLs) and oil mining leases (OMLs) issued for deep water blocks allocated before or after the commencement date, except those issued to the Nigerian National Petroleum Corporation (NNPC). The regulations stipulate that where the Federal Government has reserved a right to a participating interest in an OML derived from an OPL, the government may acquire five-sixths (rounded up) of the allottee's interest in the relevant OPL and OML. The terms and conditions for this acquisition must be at least as favorable as those in effect at the commencement of the regulations or those in the latest model production sharing contract (PSC) at the time of allocation. If existing terms are less favorable, they must be modified to align with the specified model PSC. For blocks without a production sharing arrangement, the government acquires five-sixths of the Nigerian ownership interest as a funding participant. The regulations define 'Corporation' as NNPC and 'deep water blocks' as those in water depths of 200 meters or more.

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