Overview

The document is a legal instrument titled 'Petroleum (Drilling and Production) (Amendment) Regulations, 2020,' published in the Federal Republic of Nigeria Official Gazette. It amends the Principal Regulations of 1969, specifically Regulation 61, concerning royalty payments for petroleum production. Key amendments include: replacing sub-regulation (1) with new royalty rates based on water depth and production type; introducing a price-based royalty system that adjusts rates according to crude oil and condensate prices above US$20 per barrel; defining royalty rates for onshore and offshore areas; and treating natural gas liquids spiked into the oil stream as oil for royalty purposes. The regulations were made by President Muhammadu Buhari (as Minister of Petroleum Resources) and commenced on 2nd January 2020.

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