Overview

The Marginal Fields Operations (Fiscal Regime) Regulations 2005, enacted under the Petroleum Act (CAP. 350 LFN) of Nigeria, establish the fiscal terms for marginal field operations in the country. Issued on September 30, 2005, by President Olusegun Obasanjo, who also serves as Minister of Petroleum Resources, the regulations specify royalty rates based on production levels: 2.25% for production below 5,000 barrels of oil per day (bopd), 7.5% for production between 5,000 and 10,000 bopd, 12.5% for between 10,000 and 15,000 bopd, and 18.5% for between 15,000 and 25,000 bopd. These rates supersede any previous fiscal terms for marginal fields. The regulations also allow commingled production from multiple reservoirs in a marginal field, subject to prior approval from the Director of Petroleum Resources, provided there is compatibility of reservoir fluids and pressures. The document includes a citation clause and an explanatory note clarifying its purpose.

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