Nigeria seeking billions in oil arrears

LAGOS, Nigeria, May 21 (UPI) -- Nigeria is cracking down on foreign oil companies on the financial front, demanding nearly $2 billion in oil arrears, This Day reported Wednesday.

However, both Royal Dutch Shell and ExxonMobil said they have been in full compliance with Nigerian law and owe no back taxes to the federal government.

Some speculate the Nigerian government is trying, in effect, to renegotiate agreements with both companies without a formal return to the bargaining table in hopes of generating more revenue for its Nigerian National Petroleum Co.

The national oil company has suffered chronic capital shortfalls in recent years and reportedly has been unable to raise the money necessary to fund its share of production agreements with some foreign companies working in Nigeria.

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