Nigeria: French oil giant Total warns proposed oil bill will hurt foreign investmentBy AP
Tuesday, September 21, 2010
Nigeria: Total warns oil bill will hurt industry
LAGOS, Nigeria — The managing director for French oil major Total SA’s Nigerian operation says a proposed federal law to overhaul the nation’s oil industry will hurt foreign investment.
Managing director Guy Maurice said Tuesday that the possibility of lawmakers passing the Petroleum Industry Bill had slowed investment in Nigeria over the last two years. While saying his company would respect any law passed in Africa’s most populous nation, Maurice warned such rule changes were akin to reneging on promises to longterm investors.
Analysts say the petroleum bill would sharply reduce the profits of foreign oil companies like Total, which have subsidiaries operating oil fields in Nigeria. Government officials say the bill would allow more oil money to return to Nigeria’s people.