• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 9 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days Does Toyota Know Something That We Don’t?
  • 16 hours America should go after China but it should be done in a wise way.
  • 7 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 days China is using Chinese Names of Cities on their Border with Russia.
  • 10 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 10 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 10 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 9 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 8 hours How Far Have We Really Gotten With Alternative Energy
  • 10 days Putin and Xi Bet on the Global South
  • 10 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 11 days United States LNG Exports Reach Third Place
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Tax Claim Could Delay Shell’s Major Nigerian Offshore Oil Project

Nigeria seeking nearly US$20 billion from international oil majors in back taxes could delay the approval of a major offshore oil project, Shell’s Upstream Director Andy Brown told Reuters on Tuesday.  

Nigeria has asked the oil majors operating in the country to pay a total of almost US$20 billion in outstanding taxes and royalties that it says is owed to various Nigerian states, Reuters reported last week, citing government and industry sources.  

Shell, Chevron, ExxonMobil, Total, Eni, and Equinor have each been asked to pay the federal Nigerian government between US$2.5 billion and US$5 billion, according to Reuters’ sources who saw letters sent to the oil majors earlier this year via a government debt-collection division.

Shell, a major investor in Nigeria’s oil industry, will have to take the tax claim seriously, “but we think it has no merits,” Brown told Reuters on the sidelines of the International Petroleum Week conference in London on Tuesday.  

The oil major, however, will have to resolve that tax claim issue with Nigeria before considering the final investment decision (FID) on the Bonga South West oil project, the manager said, noting that the FID “may slip into next year.”

Earlier this month, Shell’s Nigerian unit, Shell Nigeria Exploration and Production Company (SNEPCo), announced the Invitation to Tender (ITT) to contractors for the development of the Bonga South West Aparo (BSWA) oil field. The tender is for engineering, procurement, and construction contracts for the 150,000-bpd project in the Gulf of Guinea.

Related: Saudi Arabia Aims To Become Large Natural Gas Exporter

“This is a new vista for deep offshore oil and gas exploration in Nigeria based on a revised commercial framework embraced by government and the project investors,” SNEPCo’s Managing Director, Bayo Ojulari, said on February 14.

“We now have a clear commercial framework, supported by the government and project investors, toward a potential Bonga South West Aparo Final Investment Decision (FID),” Ojulari said.

ADVERTISEMENT

While a new offshore Nigerian project could be delayed, Shell is looking to fast-track the development of the Whale discovery in the U.S. Gulf of Mexico, Brown told Reuters today.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News