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Nigeria demands $2bn oil arrears | Nigeria demands $2bn oil arrears |
(about 1 hour later) | |
President Umaru Yar'Adua has ordered Nigeria's state-run oil company to demand nearly $2bn in arrears from two major oil companies. | President Umaru Yar'Adua has ordered Nigeria's state-run oil company to demand nearly $2bn in arrears from two major oil companies. |
The government say Royal Dutch Shell and ExxonMobil have not paid taxes and production sharing costs they owe on two offshore oil fields. | The government say Royal Dutch Shell and ExxonMobil have not paid taxes and production sharing costs they owe on two offshore oil fields. |
The companies say they have followed the law and are in discussions with the government. | The companies say they have followed the law and are in discussions with the government. |
Militant attacks and funding troubles have seen Nigeria cut its production. | Militant attacks and funding troubles have seen Nigeria cut its production. |
"ExxonMobil affiliate fully complies with all laws and regulations and has paid taxes and royalties to Nigeria accordingly," AFP reported ExxonMobil responding. | |
"Our affiliate routinely has ongoing discussions with a number of government agencies on a variety of topics, including tax. We do not comment on ongoing discussions," it said. | "Our affiliate routinely has ongoing discussions with a number of government agencies on a variety of topics, including tax. We do not comment on ongoing discussions," it said. |
Shell Nigeria Exploration and Production Company (Snepco) refused to comment while there were "ongoing discussions" between it and the government. | Shell Nigeria Exploration and Production Company (Snepco) refused to comment while there were "ongoing discussions" between it and the government. |
Contract negotiations | |
The Production Sharing Contracts agreed with the oil majors in the deep water production fields are coming up for renegotiation. | The Production Sharing Contracts agreed with the oil majors in the deep water production fields are coming up for renegotiation. |
A BBC correspondent says the price of oil has rocketed since they were first negotiated and the government may be trying to improve their negotiation position. | A BBC correspondent says the price of oil has rocketed since they were first negotiated and the government may be trying to improve their negotiation position. |
At the same time, the Nigerian National Petroleum Company (NNPC) has not been able to fund its share of the joint venture agreements for on-shore oil production, and is trying to find other ways of paying for them, says the BBC's Alex Last in Lagos. | At the same time, the Nigerian National Petroleum Company (NNPC) has not been able to fund its share of the joint venture agreements for on-shore oil production, and is trying to find other ways of paying for them, says the BBC's Alex Last in Lagos. |
Militant idea | |
Militant attacks and strikes by Nigerian oil workers have helped push oil prices to record highs. | Militant attacks and strikes by Nigerian oil workers have helped push oil prices to record highs. |
The defence ministry has suggested militant attacks could be brought under control by employing the very militants conducting the attacks to police the pipelines, newspaper This Day reported. | |
"We will engage them to police oil pipelines, but they must first form themselves into limited liability companies for us to discuss with them," Defence Minister Yayale Ahmed told a House of Representatives committee on Tuesday. | |
"That's a matter for the defence ministry to comment on," a spokesman for the oil company Royal Dutch Shell told the BBC. | |
A defence ministry spokesman was not available for comment. |
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