The Federal Government has perfected plans to amend Section 15 of the Production Sharing Contracts of the deep Offshore Act. This follows the approval of the proposal by the Federal Executive Council during the week's meeting presided over by the Vice President, Prof. Yemi Osinbajo.
The Minister of State for Petroleum Resources, Ibe Kachikwu stated this while briefing State House Correspondents after the meeting. He explained that the decision to amend the Act was to hike oil revenue by $2 billion.
Kachikwu further disclosed that between 1993 and 2017, the country had lost $21 billion for not acting on the provision of the Act stipulating that once the price of crude exceeds $20 per barrel, steps will be taken to distribute "premium element" at an agreed premium level for the federal government for higher revenue to get more for our oil.
He added that the move would be beneficial to the nation's economy as well as strengthen the oil sector.
