Nigeria risks losing $185B from new law, Exxon exec says

|About: Exxon Mobil Corporation (XOM)|By:, SA News Editor

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."