Nigerian plans to change the way its oil industry is regulated and funded risk cutting investment and production in Africa’s top producer, Royal Dutch Shell Plc (RDSA) said.
“Production will be down about 40 percent by 2020 without new investment,” Mutiu Sunmonu, Shell’s chairman for Nigeria, said in the copy of a conference presentation in the commercial capital of Lagos. The proposed “fiscal package is not conducive to investment. As a result, there will be few new investments.”
The Petroleum Industry Bill, approved by the Cabinet and sent to the Parliament in July, seeks to boost Nigeria’s share of profit from oil produced off its shores. The country wants a 73 percent share, up from 61 percent, Petroleum Minister Diezani Alison-Madueke said Sept. 28. Previous terms from 1993 are based on an oil price of $20 a barrel and are unrealistic, she said.
“All deepwater, most gas and some oil projects will not take place under PIB terms,” Sunmonu said in the presentation e-mailed by conference organizer, the Nigerian Gas Association.
Shell, Chevron Corp. (CVX), Exxon Mobil Corp. (XOM), Total SA (FP) and Eni SpA (ENI) pump more than 90 percent of Nigeria’s oil through ventures with state-owned Nigerian National Petroleum Corp. They said in a joint presentation to lawmakers in 2009 that proposed higher taxes in the legislation would make exploration uneconomical.
Under the bill, royalties, rentals and penalties would be set by the petroleum minister, while the country’s president would be able to award licenses without competitive bidding.
“Fundamental components of investor confidence are lacking in the bill,” Sunmonu said. There’s “no transparency on key terms due to uncertainty in provisions” including on royalties, fees and penalties.
Nigeria, Africa’s most populous country with more than 160 million people, relies on oil for 80 percent of state revenue. The West African nation produced an average 2.1 million barrels of crude a day in October, figures compiled by Bloomberg show.
To contact the reporter on this story: Elisha Bala-Gbogbo in Abuja at [email protected]
To contact the editor responsible for this story: Dulue Mbachu at [email protected]
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
MORE DETAILS:
A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
