Nigeria claims 62 billion dollars to oil companies

According to the Bloomberg Economic Information Agency, the Nigerian government wants to renegotiate the oil pumped deals in the country. In fact, the government is putting forward a 1993 law, which states that state revenue increases when the price of oil exceeds $ 20 per barrel. The big companies operating in Nigeria have not complied with this law. The shortfall would amount to $ 62 billion, Bloomberg advance (Link to English).

The largest oil companies in the world operating in Nigeria are affected by this notice. Shell, Exxon Mobil, Chevron, Total, Eni appealed to the Federal High Court to challenge this injunction. Because if they want to review the terms of royalties, they refuse to pay arrears.

Where does this request come from?

This is initially a classic agreement. To allow companies to fall back on their feet more quickly, the States refrain their financial claims at the beginning of exploitation. Thus, when offshore production began 26 years ago in Nigeria, crude oil was selling at $ 9.5 per barrel. He is now around 60 dollars for Brent. Legitimately, Abuja would like to get his piece of the pie. Today the ratio is 80/20 in favor of companies, explains Bloomberg.

Nigeria seeks income

Despite the decline in production demanded by the OPEC member countries, oil prices are falling steadily. $ 72 on May 16, 2019, against 60 in recent days. Moreover, traffic of all kinds would lose 40 million dollars per day to the State (for a production of 2 million barrels day, or 120 million dollars). The national company Nigerian National Petroleum Corporation (NNPC), recorded 106 cases of vandalism in June 2019. The regular attacks on the pipelines of the Niger Delta, launched by the separatists do not arrange anything.

Precisely, according to Reuters this financial windfall would be donated to the States of the regions of production. What try to calm the growl in the delta.