Brazil Tops Shell Payments to Governments in 2025

Shell remitted a total of $23.84 billion to governments in 24 countries where the British energy giant has upstream activities last year, with Brazil displacing Nigeria as top recipient at $4.25 billion. Shell PLC remitted a total of $23.84 billion to governments in 24 countries where the British energy giant has upstream activities last year, with Brazil displacing Nigeria as top recipient at $4.25 billion. Shell counts as government payments those related to extraction activities - the exploration, development and production of oil, natural gas, minerals or other materials. The company excludes payments arising from refining, gas liquefaction or gas-to-liquids activities, as well as payments made by entities where Shell has joint control. Shell also said that in line with the United Kingdom law requiring British companies to report payments to governments, Shell does not report payments less than GBP 86,000 ($114,500) or the equivalent materiality threshold. In 2025 the bulk of the total payment for the countries within the threshold was taxes, totaling $10.04 billion. Production entitlements accounted for $8.04 billion. Royalties were $3.77 billion. Fees comprised $1.63 billion. Bonuses and infrastructure improvements accounted for $360.59 million and $1.32 million respectively. Brazil received $1.39 billion in fees, $1.2 billion in royalties, $865.74 million in taxes, $459.71 million in production entitlements and $338.89 million in bonuses. Brazil has been Shell's biggest country in terms of crude oil and natural gas liquids production. The South American nation contributed 145.79 million barrels to the company's liquids output in 2025, plus 72.1 billion cubic feet of natural gas, according to Shell's separate annual report. As of last year Shell's operated assets in Brazil consisted of the Bijupirá and Salema fields (80 percent stake in each), which were being decommissioned; the producing fields in the BC-10 block (50 percent) in the Campos Basin; and the Gato do Mato and the adjacent Sul de Gato do Mato areas (70 percent) in the Santos Basin. Shell's operated exploration assets in the country as of 2025 consisted of 15 blocks in the Santos Basin, 6 blocks in the Barreirinhas Basin, 3 blocks in the Campos Basin and 1 block in the Potiguar Basin. Advertisement - Scroll to continue Its non-operated Brazilian portfolio as of 2025 consisted of 8 producing fields in the Santos Basin, 1 producing field in the Campos Basin and 33 exploration blocks, including 29 in the Pelotas Basin. Nigeria had been the top receiver of Shell's government payments in the prior 2 years. While Shell completed the sale of its Niger Delta subsidiary last year, Nigeria was the company's sixth-largest recipient at $2.02 billion for 2025. Shell consummated the $1.3-billion transaction with Renaissance Africa in the first quarter of 2025. As a result Renaissance Africa took over Shell Petroleum Development Company of Nigeria Ltd and acquired a 30 percent operating stake in the SPDC Joint Venture. Shell's home country the United Kingdom received $122.23 million in government payments last year, consisting of $110.37 million in taxes and $11.86 million in fees. To contact the author, email jov.onsat@rigzone.com