Oil majors and Nigerian Government agree on IJVs

Businessday reports that the international oil companies and the Federal Government of Nigeria have recently agreed on the IJV structure. My understanding of the situation, from attendance at several fora where this issue has been discussed, is that the oil majors do not particularly disagree with the proposed IJV structure, but appear to be concerned by the detail of how these entities would operate in practice. In order to be able to secure the necessary funding, it is critical that the IJVs are not merely seen as instruments of the government. Additionally, these entities may require waivers from legislation such as the Public procurement Act and the Fiscal Responsibility Act. In the absence of these issues being addressed appropriately, it is difficult to see how the objections of the international oil companies would not remain.