The Federal Government has approved a major tax incentive for Shell’s Bonga Southwest Aparo deepwater oil project, introducing a rebate of $11.50 per barrel produced to encourage investment in Nigeria’s petroleum sector.
The incentive, which is more than double the standard tax credit available for similar projects, is aimed at accelerating the project’s final investment decision and boosting offshore oil development.
The Bonga Southwest Aparo project is expected to attract approximately $20 billion in foreign direct investment and deliver an estimated 150,000 barrels of crude oil per day when production begins.
Government officials have indicated that similar incentives could also be extended to other international oil companies as part of efforts to stimulate investment across the country’s oil and gas industry.
The approval forms part of the Federal Government’s wider reforms designed to improve investor confidence, increase crude oil production and strengthen Nigeria’s position as a leading energy producer.
