[ctt template=”5″ link=”DqQMd” via=”no” ]the Joint Venture Company has said that it paid into Nigeria’s coffers the sum of $29 billion (aboutN12 trillion) between 2012 and 2016.[/ctt]
Shell Petroleum Development Company of Nigeria Limited that operates the Joint Venture Company has said that it paid into Nigeria’s coffers the sum of $29 billion (aboutN12 trillion) between 2012 and 2016.
In a press statement issued on Tuesday by Shell’s Corporate Media Relations Officer, Precious Okolobo, the Country Chair of Shell in Nigeria, Osagie Okunbor, said the company paid a total of $1,4 billion to Nigeria as corporate taxes and social royalties.This is made up of SPDC $1.0 billion and Shell Nigeria Exploration and Production Company (SNEPCo) $0.4 billion. He said the payments were aside from the energy which Shell Companies contribute to the Nigerian economy, with Shell-operated ventures in Nigeria recording an output of some 572,000 barrels of oil equivalent per day in 2016.
Okunbor, who said Shell remained strongly committed to the development of Nigeria, gave the statistics in a review of Shell operations in Nigeria for 2016 while presenting the 2017 Shell Nigeria Briefing Notes to energy editors. “Shell has been operating in Nigeria for more than 50 years,” he said.
Also, Okunbor, who is the Managing Director of SPDC, said Shell has remained committed to the development of Nigeria, her people and her economy by efficiently and responsibly producing oil and gas in onshore and offshore as well as distributing gas to industries and producing liquefied natural gas for export.
He said the determination of Shell to support the monetisation of the nation’s huge gas resources led it to establish Shell Nigeria Gas in 1998, which now supplies gas to about 90 industrial customers in Ogun, Rivers and Abia states. The gas is used for power generation and processing by industries for the manufacture of domestic products ranging from household consumables to household utensils and hardware.
As they worked to produce energy, Shell Companies in Nigeria paid special attention to the welfare of host communities, making Nigeria the second largest recipient of social investment spending in the Shell Group after the United States. Areas of focus include community and enterprise development, education, health, access-to-energy and since 2016, road safety. This is in addition to community-driven development programmes and initiatives delivered through the Global Memorandum of Understanding (GMoU), which target themes as determined by benefiting communities.
In a bid to involve more Nigerian contractors in their operations, the Shell Contractor Funding initiative was expanded with eight participating banks committing about $2.2 billion to fund contract execution by Nigerian companies working for Shell Companies in Nigeria. Since the programme’s creation in 2011, loans worth approximately $1 billion have been awarded to 220 small and medium-sized Nigerian enterprises with no recorded defaults on repayment. The Shell Contractor Fund was approved by the Organisation for Economic Cooperation and Development (OECD) at its plenary session on “Shared Value creation and local content” in December 2016 and included in the compendium of global best practices.
SNEPCo added to its efforts to improve the capability of Nigerian vendors and service providers in deep water operations by assigning a significant portion of work to this category of contractors in its recently-concluded turnaround maintenance at Bonga field.
Okunbor noted that there has been a decline in oil theft and spills, attributing the good news to improvements in air and ground surveillance and response by government security forces, lower production levels at SPDC JV operations in the Western part of the Niger Delta due to acts of sabotage and our divestment from key pipelines in 2015.
Crude oil theft on SPDC’s pipeline network resulted in a loss of about 5,660 barrels of oil a day (bbl/d) in 2016, which is less than the 25,000 bbl/d in 2015. The number of sabotage-related spills declined to 45 compared with 93 in 2015. He explained.
Okunbor added, “We continue to work with the government and other key stakeholders on the security challenges in our operating environment and look towards sustained and fruitful operations for the benefit of the Nigerian state and all other shareholders.”
Follow Us on Social Media