Long a key provider of light, sweet crude from the African continent, Nigeria is suddenly the increased focus of many of the world's Big Oil companies as they try to renew production leases on fields they have worked for years.
As last week came to a close, ExxonMobil
Not long ago, several of the major Western integrated oil companies became alarmed when Nigeria's government said it had been approached by Chinese interests that wanted to acquire interests in the licenses that were held by the Western companies, but were about to expire. It later became apparent that China's state-owned CNOOC
As The Wall Street Journal pointed out on Monday, however, at least in part because of the long-standing relationships between Nigeria and the Western companies, the Chinese never stood much of a chance of scooping up the leases. As such, people familiar with the talks between the government and the companies contend that the Chinese threat has essentially disappeared.
Nevertheless, the companies remain eager to complete the next round of licenses. It seems that the government is considering reworking the legislation in a way that would magnify the taxes and royalties paid by the companies. Shell's
Chevron
The renewed commitment to Nigeria comes as it has fallen to second place among oil-producing African nations, behind Angola. Chevron and BP
My takeaway from events in the volatile West African country is that, while I can't claim any special knowledge behind ExxonMobil's having renewed its contracts first, in the world of Big Oil, the company almost always seems to come in first. I wouldn't let that tendency be lost on Foolish investors with an inkling for energy.
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