Nigeria’s Federal Government has approved an enhanced production-linked tax credit of about $11.50 per barrel for Shell Plc and its partners tied to the Bonga Southwest Aparo deepwater oil project. The government says the incentive is intended to address delays and help move the project forward, which it estimates could unlock roughly $20 billion in foreign direct investment. The initiative is framed as a way to improve investment conditions for the project and support Nigeria’s broader oil production outlook. Both outlets report that the tax credit is specifically linked to production for the Bonga deepwater development and is designed to encourage the company and partners to proceed with the long-delayed project.
The announcement reflects the government’s use of fiscal measures—rather than direct funding—to catalyse energy-sector investment. Shell is named as the operator and beneficiary alongside its project partners, under a tax-credit arrangement that depends on per-barrel production performance.
