A satellite image of Nigeria's oil-rich Niger Delta region. Lucrative offshore projects have helped boost the country's crude production in recent years.
Life just got harder for major oil companies operating off the coast of Nigeria. On Nov. 4, Nigerian President Muhammadu Buhari signed a law updating the terms of the country’s production-sharing contracts that, among other changes, increase royalties on international oil firms. As Africa's top crude producer, Nigeria is almost entirely financially dependent on its petroleum operations, which account for 90 percent of government revenue. The current oil glut has thus hurt Nigeria's pocketbooks particularly hard, forcing it to consider drastic measures to squeeze out more money from its growing offshore operations. But by placing international companies in its crosshairs, Nigeria instead risks driving away the crucial deep-water investments in needs to keep its lights on....
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