Nigeria, as a member of the Oil Producing and Exporting Countries (OPEC), today operates various forms of Joint Venture arrangements. From 1908, when oil exploration first began in Nigeria by a German company, the Nigerian Bitumen Corporation (NBC), through 1937 when Shell D'Arcy took concession of the entire country as a single block to 1972 when more than 13 international companies joined the entrepreneurship, the Nigeria Petroleum Industry has witnessed numerous forms of Production Sharing Contract agreements. These arrangements which reflected state of the art of industry at the time, ranged from simply Tax and Royalty only through "Equity Sharing" to "PRODUCTION SHARING" AGREEMENTS. In addition, each phase of these agreements partly reflected the following:
Prevailing Fiscal and Economic Environment in the Country.
National Development and International Obligations/Needs.
State of Global Economy.
This Paper will discuss among other things:
The Economic implications of each arrangement to both Joint Venture partners.
The possible future trends and their implications.
The salient points in each arrangement shall be highlighted.