Plans by Nigeria, Africa’s biggest oil producer, to review offshore production contracts signed with international oil companies two decades ago, have added to uncertainty in an industry already lacking regulatory clarity, said analysts including Philippe de Pontet of Eurasia Group. The objective is to increase Nigeria’s earnings from the fields, according to Emmanuel Kachikwu, group managing director of the Nigerian National Petroleum Corp. Yet, declining crude oil prices take away some of the incentive for investments that would’ve given the government more leverage in negotiations. “With Brent below $50 a barrel, the timing is not ripe for big contract negotiations.,” de Pontet said. “If the administration is not careful its agitation for contract review could prove counterproductive at a time when the oil sector is already stagnant at best.” Nigeria depends on crude exports for two-thirds of government revenue and more than 90 percent of export earnings. NNPC, as […]