FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Problems In The Nigerian Oil Market Get Worse

At a time when the country should literally be rolling in income from the oil industry the signs are not good for short term oil production in Nigeria. While the major oil companies in the country, Shell and ExxonMobil, have enjoyed a comfortable relationship with the local government for some time it seems as though the relationship is becoming more strained.

The government is demanding $2 billion in cost and tax arrears which they claim the two companies owe the state between them. While the companies involved maintain that they have acted in line with the letter of the law the disagreement has caused major problems for the Nigerian oil industry. In part this has been one of the causes of the more recent boost in the oil price, with wild cat strikes and attacks on refineries across the country.

The situation seems to be out of control at the moment with some newspapers suggesting the government are looking for the oil companies to employ the militants involved to actually defend the pipeline. There are also many others who suggest this is a bargaining tactic by the Nigerian authorities after they have seen the price of oil move substantially higher, and the fact that the agreements with the two oil majors are up for renewal very soon.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue