Nigeria Threatens Oil Contracts

Nigeria is to renegotiate its contracts with western operators, threatening the profits of oil majors in the country.

The chairman of the Nigerian Government's oil and gas reform committee Rilwanu Lukman announced yesterday the country might have to revisit some of the "generous terms" granted to western companies, writes the UK’s Financial Times newspaper.

Nigeria is already a dangerous place for operators due to social conflict and political tensions says investment analyst at Brewin Dolphin Investment Banking David Macnair.

"Existing operators will probably stick around, but the tougher they get, the greater the chance they scare companies away," Macnair says.

In August, the Nigerian Federal Government scrapped the country's state-owned oil corporation, replacing it with five new agencies to control and regulate the nation's oil and gas sector.

Reported by Ozge Ibrahim