Nigeria seeks $62 billion from Oil Companies

The Nigerian government is seeking $62 billion from oil companies. This is an old regulations that allow the government to revisit revenue-sharing deals on petroleum sales if crude prices exceed $20 a barrel, according to the attorney general Abubakar Malami.

A law dating back to the 1990s that governs oil production sharing contracts allows the government to review revenue sharing once the oil price rises above $20 per barrel.

Malami, adds that Nigeria had been “short-changed” under the law and is pursuing a case for recovery if it is established that the oil companies had under-paid the government.

Earlier this year, industry and government sources told Reuters that Royal Dutch Shell, Chevron, Exxon Mobil and Eni, were each asked to pay the central government between $2.5 billion and $5 billion.

The oil companies were not immediately available for comment.

President Muhammadu Buhari on Tuesday presented a record 10.33 trillion naira ($33.8 billion) budget for 2020 to lawmakers. He has repeatedly rolled out record spending plans but struggled to finance them due to lower oil output and few alternative non-oil exports.