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1. #NIGERIA OIL AND GAS CONCESSIONS MAP AND LICENSES WWW CODE#
2. #NIGERIA OIL AND GAS CONCESSIONS MAP AND LICENSES WWW LICENSE#

This last point created a lot of tensions between the producing countries and the operating companies when concessions were signed 15 to 20 years ago when the barrel price was fluctuating between $10 and $20 per barrel.Īt that time the concession fees were a couple of USD per barrel, which then turned the concessions contracts totally unbalanced when the barrel prices started to rocket to $30, $50 and of course $100 per barrel. In practice it means that the State will receive this fee regardless of the capital expenditure, profits and losses of the operating company.Īll the costs and risks are left to the operating company, but also all the profits exceeding the fee. Usually this concession fee per barrel, or per Barrel of Oil Equivalent ( BOE), is fixed for the duration of the concession. This concession fee will depend on the barrel price at the time of the signature of the concession, and also on the quantity and quality of the oil and gas produced such as estimated at the exploration phase. Then the operating company shall pay to the local State a fee per barrel produced in compensation of the production of oil and gas.

#NIGERIA OIL AND GAS CONCESSIONS MAP AND LICENSES WWW LICENSE#

The operating company, or a pool of them, shall buy a concession license for the exploration of a given block.

#NIGERIA OIL AND GAS CONCESSIONS MAP AND LICENSES WWW CODE#

Some concessions in Abu Dhabi with BP, ExxonMobil or Total may be 65 years old.Īgain, as extrapolated from historical mining code in each country, the financial structure of an oil and gas concession is pretty simple as based on two phases, exploration and production. These concessions are long term agreements signed between the State of a producing country and the operating company, usually an International Oil Company (IOC), for at least 20 years. The area subjected to a concession is usually called a block with its own rights and obligations. These concessions apply the same way for onshore or offshore development as long as located in the Continental Shelf of the State. In this general legal context, the State represented by its Government, or its l egal Authority, grants the rights and obligations to an operating company to explore, develop and produce oil and gas resources as any mining company. Oil and gas concessions are very similar to mining concessions considering that in all countries, except USA, and few others the underground belongs to the State, not to the owner of the upper land. Concession is a form of contract in the oil and gas industry between a State and a company to explore and develop these resources.