The Minister of State for Petroleum, Ibe Kachikwu, says Nigeria has lost about $60 billion to the non-enforcement of the terms of the Production Sharing Contracts signed between the federal government and the international oil companies.
The federal government had in 1993, awarded some oil blocks in the deep waters to the IOCs.
It also provided generous fiscal terms to the oil majors as a result of high risks involved in exploring in the deep water.
The 1993 PSC provided that royalties paid by these companies on the oil blocks be reviewed upward when crude oil price exceeds $20 per barrel.
Kachikwu says non enforcement of the review led to loss of huge revenues.
He pointed out that there were inefficiencies in Nigeria’s oil and gas sector, which had benefited all the stakeholders, including the IOCs.