Oil giants tremble at Nigeria's oil reforms

A proposed law aimed at sweeping reforms of Nigeria’s oil sector is almost halfway through the legislative stages of approval but some of its provisions are sending jitters among giant oil
operators.

Multinational oil companies, already buckling under incessant militant attacks which have cut production by about 30% in the past three years, back the Bill regarding the streamlining of the industry’s governance and operational processes.

But they are uncomfortable with the proposed taxation regime.

The petroleum industry Bill, which went through its second reading and debate in the senate last week, is intended to overhaul the regulatory and operational systems of the industry, the lifeline of the West African powerhouse.

It plans to transform the existing joint ventures between the transnational oil firms and the state Nigeria’s National Petroleum Company (NNPC), and turn NNPC into an autonomous and internationally profitable entity.

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