Business
Nigeria planning huge overhaul of oil and gas industry
Under the bill the state oil company Nigerian National Petroleum Corporation (NNPC), widely viewed as corruption-riddled, would be unbundled.
(More: Nigeria: President Jonathan accepts resignations of execs of state oil NNPC)
A National Petroleum Assets Management Company would include interests in joint ventures between the NNPC and international oil firms.
Separately, a National Oil Company and National Gas Company would include plans to divest minority shares for offer on the Nigerian stock exchange.
Taxes on profits would be 25 percent for offshore production and 50 percent for onshore, in addition to Nigeria’s 30 percent corporate income tax.
By comparison, the current rates are a flat 50 percent for offshore and 85 percent for onshore.
Beyond that, there are royalty payments. The new royalty rates are not in the bill, which could give the oil minister the option of altering them, but are to be based on production levels and oil prices.
