Shell pays Nigerian govt $42b oil revenue in four years

Shell Petroleum Development Company

Shell Petroleum Development Company

Taxes, royalties hit $1.1b in 2015
Shell Petroleum Development Company (SPDC) Joint Venture (JV)’s partners payment to the Nigerian government from 2011 to 2015 was $42 billion.

Besides, the company’s share of royalties and corporate taxes paid to the Nigerian government in 2015 alone was approximatively $1.1 billion.

The company, which made this disclosure on monday in its 2015 Sustainability Report, stated that Shell Companies in Nigeria (SCiN) remained major contributors to the economy, not only through the energy they produce and the revenues they generate for the country, but also via their supply chains, local content and social investment.

According to the company, in 2015, Shell-operated ventures in Nigeria produced an average of 688,000 barrels of oil per day (bpd), with 496,000 bpd from the SPDC JV and 192,000 barrels of oil per day from the Shell Nigeria Exploration and Production Company Limited (SNEPCo).
It added that Shell Nigeria Gas Limited (SNG) supplies natural gas to 87 industrial customers and the SPDC JV is the major supplier of gas to Nigeria LNG.

Shell noted that the SPDC JV Afam VI power plant, which has a 650 megawatt generating capability, supplied approximately 14 per cent of the nation’s grid-connected electricity in 2015 and has delivered 20 million Megawatt-hour (MWh) of electricity into the Nigerian grid between its inauguration in 2008 and June 2015.

“SCiN make a major contribution to developing the country’s human capital and contracting capacity. Ninety- three percent of SCiN contracts were awarded to Nigerian companies in 2015.

“The use of locally manufactured goods and Nigerian service companies creates jobs in the communities we operate. In 2015, $0.9 billion was spent by SPDC and SNEPCo on local contracting and procurement. Ownership of key assets such as rigs, helicopters and marine vessels is a key focus and SCiN have been recognised for their work in local content, including the Local Content Operator of the Year Award by the Petroleum Technology Association of Nigeria (PETAN) in 2013 and 2015”.

The company said that theft of crude oil on the pipeline network was 25,000 barrels of oil per day (bblpd) in 2015, which, it said, is less than the 37,000 bblpd in 2014.

It noted that the number of sabotage-related spills declined to 93 incidents compared with 139 in 2014.

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1 Comment
  • Jude

    The question is where did all this money go? how come our foreign reserves is always hanging at a certain balance of $30+billion dollars all the time?. If $42bn was given to Nigeria from shell alone, what of Total, Mobil and Chevron? add all these plus NNPC sales of crude and NLNG sales of gas. Nigerians need to ask questions because we have no business being in this state of imposed recession.