Nigeria has granted Shell Plc a production-linked tax credit for a deepwater oil project, an incentive that may be extended to other major oil companies as Africa’s biggest crude producer works to reverse years of declining output, according to people familiar with the matter.
Terms approved by President Bola Tinubu to push the Bonga Southwest Aparo project toward a final investment decision give Shell and its partners a rebate of $11.50 a barrel of crude produced, said the people, who asked not to be identified because the information isn’t public. That’s more than double the standard rate.
The sign-off clears one of the last hurdles for a project that has been in limbo for close to two decades. Nigeria’s state oil company, NNPC Ltd., said the approval marks the first final investment decision on a Nigerian deepwater production-sharing contract asset since 2008, a gap that has weighed on the country’s
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