$11.50 per barrel in production-linked tax credits was approved for Shell and its partners on the Bonga Southwest Aparo project, according to people familiar with the matter.
President Bola Tinubu cleared the terms to push the deepwater development toward a final investment decision and help lift output in Africa's biggest oil producer.
The rebate is more than double the standard amount, signaling a richer incentive package for a project estimated at about $20 billion.
Nigeria plans to extend similar incentives to other oil majors as it tries to spur new offshore investment and raise crude production.