Shell Nigeria Exploration and Production Company Limited
The Federal Government has approved a special production-linked tax credit for Shell Plc’s Bonga Southwest Aparo deepwater oil project in a fresh move aimed at unlocking billions of dollars in investment and accelerating Nigeria’s crude oil production.
According to a Bloomberg report on Tuesday, President Bola Tinubu approved fiscal terms granting Shell and its partners a tax rebate of $11.50 for every barrel of crude oil produced from the project, more than double the standard incentive currently available under Nigeria’s fiscal framework.
The report, citing people familiar with the matter who spoke on condition of anonymity because the information is not yet public, said the incentive is expected to help move the long-delayed Bonga Southwest Aparo project towards a Final Investment Decision.
The sources also disclosed that the same production-linked tax credit would be extended to other international oil companies developing new deepwater projects in Nigeria and would remain in force until at least 2029.
