Shell Plc’s payments to governments in countries where it operates upstream projects fell sharply in 2025, with Brazil overtaking Nigeria as the company’s largest state beneficiary.

The London-based energy major said total payments to governments stood at $23.8 billion last year, representing a 15% decline from the previous year, Bloomberg reported.

The drop was largely driven by Nigeria, where Shell’s payments more than halved to about $2 billion as the company continued its gradual exit from onshore oil production in the country.

Shell paid $5.34 billion to Nigeria in 2024, the highest amount it paid to any country that year.

The payments, which include taxes and other charges, rose compared to the previous year.

The figures underscore how global oil majors are reshaping capital flows across their portfolios, increasingly prioritising assets with higher returns and more stable operating environments.

This shift has strengthened the importance of deepwater and offshore basins, particularly in Brazil.

In contrast, Shell’s payments to Brazil rose about 15% year-on-year to approximately $4.25 billion, reflecting growing output from the country’s prolific offshore oilfields.

Brazil has also attracted increased activity from other global energy companies. TotalEnergies recently expanded its stake in the Lapa field, while ExxonMobil is boosting production from the Bacalhau project. BP has also reported a major offshore discovery in Brazilian waters, its largest in decades.

Meanwhile, Nigeria’s role in Shell’s global portfolio continues to evolve. The company has been steadily reducing exposure to the country’s onshore operations following years of operational and environmental challenges, while maintaining and expanding offshore production.

Industry analysts note that the shift reflects a broader realignment among supermajors toward regions offering lower risk profiles and stronger fiscal stability, even as legacy producers like Nigeria continue to adjust to the changing investment landscape.