Thomko Petro Chemical Blog

Nigeria and Big Oil are engaged in a power struggle over profits.

The country is withholding nearly $1 billion from Shell, in a bid to re-negotiate existing profit-sharing agreements.

Shell states that 95% of profits from its joint venture go to the Nigerian federal government - but Nigeria believes that it has been shortchanged by the oil majors.

Shell also claims that the government is failing to come up with cash to deal with gas flaring from oil facilities.

Anger in local communities at the pollution caused by the gas flaring - along with the inability of local and national governments, as well as oil firms, to provide basic infrastructure in the Delta has prompted protesting youths to regularly invade and occupy vital facilities.

The latest invasion took place on Friday and disrupted production, which is running at well below capacity.

Source: Guardian UK - Shell's future in Nigeria in doubt