Section 87

(1) This Part and the provisions of the Petroleum Industry Act shall
application
not apply to holders of an oil prospecting licence or oil mining lease who do not
of this Part
enter into a conversion contract until the termination or expiration of the
and other
matters respective oil prospecting licence or oil mining lease.
Act No. 6,
2021
Act No. 6, (2) Notwithstanding subsection (1), the provisions of Chapter Two of this
2021
Act and paragraph 6 of the First Schedule to the Petroleum Industry Act shall
apply to licences and leases awarded to indigenous Nigerian companies on a
sole risk basis under the Petroleum Act, on which the Government has
successfully exercised its back-in rights prior to the effective date of the
Petroleum Industry Act, but any renewal of an oil mining lease shall be based
on the provisions of this Part and the Petroleum Industry Act.
(3) The fiscal provisions of this Part are the base terms that are applicable,
and the Commission may under section 74(2) of Petroleum Industry Act conduct
a licensing round whereby the bid parameter is a higher royalty, profit oil share
or other fiscal features in order to ensure that the Government receives the full
market value for each block.