Energy Minister Franklin Khan who gave details to the parliament yesterday after more than a year of negotiations made the announcement.
Minister Khan revealed that Shell agreed to pay government $2.5 billion by the end of 2019, the money to be paid in US to the sum of us $397 million.
Like the BPTT payment last year of $1 billion, Shell is making its payment but not admitting to cheating the country of large sums of revenue in transfer pricing.
Minister Khan told the parliament, the outcome of these phase 1 negotiations, with Shell, resulted in an agreement to pay the government approximately, US$397m to the end of 2019 and the parties are moving into phase 2 of the negotiations which surround the restructuring of Atlantic LNG.
In a detailed speech on the agreement signed in the Netherlands, Minister Khan told the parliament that over the next 9 years the country will receive improved revenue of $6.4 billion from Atlantic’s trains 2,3 and 4 and should train 1 continue to operate, could earn $800 million in additional revenue annually.