ABSTRACT
In the area of the oil industry generally, the Petroleum Decree No. 51 of 1969 vests the entire ownership and control of all petroleum found under or upon any Nigerian lands, territorial water or within Nigeria's continental shelf with the Nigerian government or its agencies. The new Nigerian oil policy of participation in equity capital began with the agreement reached between the Nigerian Agip Oil Company (NAOC), a subsidiary of the Italian Oil Company, ENI. In an attempt to improve the joint venture relationships between the Federal Government of Nigeria and foreign oil companies, various forms of contracts such as the Production Sharing Contract (PSC) and the Risk Service Contract (RSC) were devised. The Risk Service Contract is a more specific form of contract than the Production Sharing Contract and it offers more concrete advantages than those of the PSC.
