Nigeria Races to Extract Its Oil Before It's Too Late – Bloomberg

Photographer: George Osodi/Bloomberg
Nigeria’s vast reserves of oil and gas have generated great riches but are also blamed for fostering conflict, corruption and poverty. Now the country’s leaders want to almost triple its crude production just as a warming world seeks to accelerate a move away from fossil fuels.  
After years of stagnant oil output, the government finally enacted a long-delayed law cutting taxes levied on energy companies to more globally competitive levels. Production royalties will now range from 5% to 15%, depending on where fields are located, down from the previous range of 7.5% to 20%. The government also wants to revamp moribund state-owned refineries to help wean Africa’s largest crude producer off refined fuel imports. The legislation also seeks to end the sort of legal and regulatory uncertainty that’s delayed investment and led to lawsuits and disputes over licenses. The hope is to avert the so-called stranded assets problem confronting oil, gas and coal companies. 

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