Abstract: Fiscal regimes are very important in the global Petroleum Exploration and Production (E&P)
industry. They sharpen policies, management strategies and revenue (take) by governments while
defining the attractiveness of the industry to investors. One of the major parameters in fiscal regimes
is royalty oil, which could be fixed or adjustable on a sliding scale. Nigeria, which has used fixed
royalty scale since the first oil in 1958, is now proposing a change to the sliding royalty scale method
within a general review of the country's fiscal regime terms. This study investigated the impact on
Government take of a change to sliding royalty in both Joint Ventures (JV) and Production Sharing
Contract (PSC) arrangements. Generalised cash flow models to evaluate true government take were
developed under conditions of royalty scales based on either or both oil price and volume of production.
The results show that government take uoder sliding royalty scale rates compared favourably with take
under fixed royalty ratcs. However, sliding royalty rates calculated based on both oil price and volume
of production yield higher government take than those based on either volume of production or price
of oil alone.
S.O., L (2021). Evaluation of True Government Take under Fixed and Sliding Royalty Scales in Nigerian Oil Industry. Afribary. Retrieved from https://afribary.com/works/evaluation-of-true-government-take-under-fixed-and-sliding-royalty-scales-in-nigerian-oil-industry
S.O., Lsehunwa "Evaluation of True Government Take under Fixed and Sliding Royalty Scales in Nigerian Oil Industry" Afribary. Afribary, 23 Apr. 2021, https://afribary.com/works/evaluation-of-true-government-take-under-fixed-and-sliding-royalty-scales-in-nigerian-oil-industry. Accessed 25 Nov. 2024.
S.O., Lsehunwa . "Evaluation of True Government Take under Fixed and Sliding Royalty Scales in Nigerian Oil Industry". Afribary, Afribary, 23 Apr. 2021. Web. 25 Nov. 2024. < https://afribary.com/works/evaluation-of-true-government-take-under-fixed-and-sliding-royalty-scales-in-nigerian-oil-industry >.
S.O., Lsehunwa . "Evaluation of True Government Take under Fixed and Sliding Royalty Scales in Nigerian Oil Industry" Afribary (2021). Accessed November 25, 2024. https://afribary.com/works/evaluation-of-true-government-take-under-fixed-and-sliding-royalty-scales-in-nigerian-oil-industry