Shell in Nigeria said it has paid the sum of $986 million in corporate taxes and royalties to the Nigeria’s Government in 2021.
The international oil giant in its Facts sheet: 2021 key developments, said Shell Petroleum Development Company (SPDC) remitted $424 million and SNEPCo $562 million paid to the government, compared with $900 million in 2020.
The report explained further that the SPDC JV, SNEPCo and 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.
It also disclosed that Shell Companies in Nigeria spent $800 million on contracts to Nigerian registered companies which is same level as the 2020 spend.
“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 498,000 barrels of oil equivalent, compared with 621,000 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.
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 an construction activities, have ramped up. SPD 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.