…up their revenue contribution to FG to $986million in 2021
…realized $533 million from sales of 30% interest in OML 17
…recorded 121,000 loss in crude production
Shell companies in Nigeria remitted to the Federal Government in 2021 $986million against $900million that was contributed to the purse in 2020.
The payment are in corporate taxes and royalties paid to the Federal Government of Nigeria with Shell Petroleum Development Company(SPDC)paid $424 million While Shell Nigeria Exploration and Petroleum SNEPCo $562 million, compared with $900 million in 2020.
Shell Companies in Nigeria in a recently released fact sheet on its activities in the country also spent $800 million on contracts to Nigerian-registered companies which is the same level as the 2020 spend.
The SPDC Joint Venture (JV) SNEPCo and Shell Nigeria Gas (SNG) spent $33.82 million in direct social investment, compared with $49.4 million in 2020. The decline is largely because in 2020, significant contributions were made to COVID-19-specific programmes supporting communities impacted by the onset of the pandemic.
The SPDC JV, in compliance with statutory requirements, paid $38.7 million in 2021 to the Niger Delta Development Commission (NDDC). SNEPCo and its co-ventures paid $23 million to the NDDC.
Combined production from SPDC and SNEPCo (Bonga) declined to 493,000 barrels of oil equivalent, compared with 614,000 barrels of oil equivalent in 2020.
The decline was largely a result of divestment action and activity curtailment due to heightened security issues in the Niger Delta.
Shell Companies in Nigeria directly employed 2,500 people (of whom 97% were Nigerian nationals) with more than 8,500 contractors supporting operations.
As regards business development, Shell Energy Nigeria was established to focus on gas, power, renewables and energy solutions for industrial and commercial customers.
SNG, the domestic gas distribution entity of the Shell Energy Nigeria business line, continues to expand and has signed agreements to deliver gas to around 165 corporate customers.
SNG provides gas to more than 130 commercial and industrial customers, at the time of writing. Infrastructure is being built to enable the delivery of gas to new customers.
SNEPCo, its OML 118 partners and the Nigerian National Petroleum Corporation (NNPC) extended the OML 118 production-sharing contract (PSC) licence for another 20 years, further incentivising development of the OML 118 block and opening opportunities in Nigeria’s deep waters.
NLNG Train 7 early works, including engineering, procurement and construction activities, have ramped up.
SPDC completed the sale of its 30% interest in OML 17 for $533 million.
Shell has announced its intention to reduce its involvement in onshore oil and gas production in Nigeria but will continue to develop its deep-water oil and gas production and its gas supply businesses for domestic use and export
As for social Investment ,the All On impact investment company increased the size of its total portfolio of renewable, energy access investee companies from 31 to more than 40, and the All On Hub increased its supported businesses from 41 to 81 ventures.
All On, together with Odyssey Energy Solutions and the Global Alliance for People and Planet, launched the Demand Aggregation for Renewable Technology (DART) programme to bring affordable, high quality solar products to communities most in need.
Community Health Insurance Scheme added 8,180 people. More than 85,000 people have been enrolled across the Niger Delta since launch in 2010. The scheme is a partnership between the SPDC JV, Rivers State Government and local communities.
Health-in-Motion mobile community health outreach programme added 2,451 people. More than one million people across the Niger Delta have benefited since 2010.
The SPDC JV renewed five Global Memorandum of Understanding (GMoU) agreements to provide secure funding for community-led development programmes and also deployed one new agreement. Over $98.6 million was disbursed over the last five years.
The SPDC JV and SNEPCo invested $6.2 million in education programmes. More than 2,500 secondary school grants, over 3,200 university grants and 900 Cradle-to-Career scholarship grants have been made since 2016.
The SPDC JV has delivered the first phase of a $5 million infrastructure project to the Nigeria Maritime University (NMU), Okerenkoko, Warri, Delta State.
The global Shell LiveWIRE entrepreneurship programme helped 190 Nigerians through training and grants.
olusola Bello
