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Thursday, Aug 22
Nigeria risks losing $185B from new law, Exxon exec says
- Nigeria risks losing $185B within 10 years and oil production may slump by 25% from 2.4M bbl/day as higher taxes proposed by a new law will deter investment in the country’s oil industry, according to the managing director of Exxon Mobil’s (XOM +0.7%) Nigerian unit.
- The new law aims to increase the government’s share of profit from oil pumped to at least 73% from 61% currently.
- XOM, Shell (RDS.A, RDS.B), Chevron (CVX), Total (TOT) and Eni (E) combined pump ~90% of Nigeria’s oil through ventures with the state-owned oil company; the group says proposed increased taxes in the legislation would make exploration "uneconomical."