Oil Firms Fear Nigerian Plan May Deter Offshore Investment
- Legislation seen as unfavorable for deepwater projects
- Trade group urges government to offer royalty relief programs
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International energy companies working in Nigeria are worried that proposals in the country’s long-delayed oil industry law will deter investment in new offshore projects.
At least half of Nigeria’s total crude output is from offshore oilfields, helping to offset declining production from mature onshore assets. But recent discoveries have remained undeveloped in the face of regulatory and legislative uncertainty.