Oil-Rich Countries To Extract More From Oil Majors (XOM, RDS.A)

Oil-Rich countries like Brazil, and Nigeria, are planning to increase their share of revenue from the oil, and gas resources in their countries.

Typically they charge 50% by way of royalties or corporate taxes on revenues generated through exploration, and production by major oil firms like Exxon Mobil (NYSE: XOM), and Royal Dutch Shell (ADR) (NYSE: RDS.A).

Joseph Stanislaw, an independent energy adviser at Deloitte & Touche, says - "Host governments are trying to find ways to increase their share, the terms are going to get more difficult over time."

Iraq charges close to 80% of the revenue by way of royalties or corporate taxes. Brazil and Nigeria are also trying to increase their collections to that level. However, this may discourage the development of newer oilfields in the future.