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Western oil groups warn Nigeria against overhaul of contracts

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Western oil executives are warning Nigeria against major changes to commercial contracts that could lead to the government taking a bigger share of revenues from the country’s deepwater fields, FT reports.

The decision – which the government says will affect Royal Dutch Shell (RDS.A, RDS.B), Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM), Eni (NYSE:E) and others “in the weeks and months ahead” – has sparked concern among execs who say they know nothing of the details are have not been contacted.

Western companies would be almost certain to resist changes to the terms of existing agreements, many of which date back to the 1990s, while the development of eight planned deepwater projects due by 2020 that would contribute 1M bbl/day of output could be delayed or terminated as companies cut capital investment.

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