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."

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Comments (3)
  • Val Halla
    , contributor
    Comments (305) | Send Message
    who needs oil anymore.
    22 Aug 2013, 03:32 PM Reply Like
  • cannedpawn8
    , contributor
    Comments (212) | Send Message
    You drive?
    22 Aug 2013, 07:20 PM Reply Like
  • User 353732
    , contributor
    Comments (5158) | Send Message
    As Western capital leaves North Africa in favor of East and West Africa and North America, Chinese capital will probably rush in.
    The Nigerians are engaged in creeping confiscation: the Russian model.
    22 Aug 2013, 04:30 PM Reply Like
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