Tinubu Approves $11.50-per-Barrel Tax Credit to Unlock $20bn Bonga Deepwater Project

The Federal Government has approved a new production-linked tax credit of $11.50 for every barrel from Shell’s Bonga Southwest Aparo deepwater field. This incentive, more than double the standard rebate, aims to secure final investment decisions and attract about $20 billion in development funds. NNPCL says the project could yield up to 150,000 barrels per day at peak production. The same credit will be available to other international oil majors developing new deepwater blocks until at least 2029. This measure is part of President Tinubu’s wider oil sector reforms to counter theft, vandalism and ageing infrastructure, and boost foreign direct investment. Nigeria’s output averaged 1.56 million barrels per day in June, its highest since April 2020. Investors are calling on the government to publish the order in the Official Gazette to secure long-term legal certainty.

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