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Nigeria Risks $185 Billion Loss From New Law, Oil Companies Say

Nigeria risks losing $185 billion within 10 years as higher taxes proposed by a new law will deter investment in the country’s oil industry, an association of energy companies including Exxon Mobil Corp. said.

Nigerian oil production may slump by 25 percent from 2.4 million barrels a day if the Petroleum Industry Bill, or PIB, is implemented, Mark Ward, managing director of Exxon Mobil Corp.’s Nigerian unit, said in Lagos today. The loss of investment caused by the law would leave it insufficient to tackle decline rates at oilfields, said Ward, representing the Oil Producers Trade Section at a conference in the commercial capital.