Nigeria’s President Goodluck Jonathan says he’ll push for a major overhaul in the nation’s vital...

Nigeria’s President Goodluck Jonathan says he’ll push for a major overhaul in the nation’s vital petroleum sector, despite objections from oil majors. The government wants a bigger share of output and says current plans from the 1950s are outdated and “punitive” compared with terms elsewhere. Exxon (XOM) and Shell (RDS.A) object and say future investments may be at risk.

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Comments (7)
  • Tony Petroski
    , contributor
    Comments (6356) | Send Message
    Let's all wish President Jonathan good luck. He can't do any worse than his brother, Badluck, and certainly should outshine the disastrous regime of his cousin, Potluck.


    Incidentally, President Jonathan is an NFL fan and used to be a Colts supporter until they let Peyton Manning go for that new guy (name escapes me).
    28 Sep 2012, 10:26 AM Reply Like
  • hwood007
    , contributor
    Comments (1195) | Send Message
    More and greed is not always better, if you are in doubt, ask those who used Maddoff, their greed did not work out well as it seldom does.
    So let us all wish Goodluck good luck.


    The new deal could be so bad that a well accident may be so costly to repair that XOM & Shell would walk away. That would be bad luck for Goodluck.
    28 Sep 2012, 10:48 AM Reply Like
  • gdonelson
    , contributor
    Comments (36) | Send Message
    Several issues here for Nigeria the most populous nation of West Africa. Population and social pressures on state finances - the realization that unless they get a bigger chunk of their admittedly declining resource basic government social obligations are under funded in short order. Second as the domestic requirement for energy increases (gasoline is now highly subsidized) there is less and less available oil for export and cash to run the government. This same scenario will play out across the spectrum of exporting countries over the next 5-10 years. In the not to distant future available exports will drop below the world demand for imports. Not a pretty picture
    28 Sep 2012, 11:31 AM Reply Like
  • usenetim
    , contributor
    Comments (5) | Send Message
    If Shell & Exxon can give better deals to other countries why not Nigeria?. If they don't like the deal they can always go to other countries and operate. I believe countless firms from China and other countries are watching and waiting to fill their void. President Goodluck shouldn't be pressured to tow their line. These companies and their their different operational policies when it involves Nigeria are part of the general problem facing the country and causing instability. for eg. these multinational oil firms have the capacity to assist the country they have raped for so long with simple power generation but they don't care and are more comfortable just flaring the gas just to get the oil and trasnfer the wealth out while the people stay in darkness.
    Will Exxon or Shell tell Chavez, Russia, Saudis or Russia how to manage their resources? They should accept the new terms because the previous one had been beneficial to them for too long or leave so other players with beneficial terms can come in.
    28 Sep 2012, 12:25 PM Reply Like
  • hwood007
    , contributor
    Comments (1195) | Send Message
    Nigeria is known to fill the pockets of the leaders first and any left over goes to the people. You would be hard pressed to find where the money goes if you paid Nigeria a visit. It is not just Nigeria, the others do the same. Nigeria could not get the oil out of the ground without outside help, so if they invest some money into education, they may get a bigger piece of the pie, unless the uber class takes it all.
    1 Oct 2012, 01:37 PM Reply Like
  • cfg3450
    , contributor
    Comments (86) | Send Message
    Seems we have more non-investors giving their opinion than
    investors. Most investors will agree that XOM and RDS will
    make a good decision as to staying or picking up and leave.
    If the profit justifies the risk they will stay. Period.
    Also, seems more and more governments around the world
    want to live off their resources. This is good only if the income
    is invested for the good of the people long term. Better education for all?
    28 Sep 2012, 01:00 PM Reply Like
  • BZee
    , contributor
    Comments (53) | Send Message
    Many of these multinationals risked their investments to initially find and develop the oil and gas and now the Nigerian government wants to change the terms and increase their take? It is possible that the initial investments would not have taken place if the multinationals had known the terms were to degrad. If the multinationals do not accept the new terms, Nigeria should have to buy them out for a fair price.
    29 Sep 2012, 04:47 AM Reply Like
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