FG gained N9.4tn from Shell within five years

By Post Nigeria April 13, 2015 11:58

FG gained N9.4tn from Shell within five years

The Federal Government has received a total of $48bn or N9.46tn, from Shell Petroleum Development Company of Nigeria Limited from 2010 to 2014, according to Royal Dutch Shell Plc, the parent company of the SPDC.

In its ‘Sustainability Report for 2014’ released on Friday, the Oil giant said its share of royalties and taxes paid to the Government in 2014 was $3bn ,SPDC, $1.8bn and Shell Nigeria Exploration and Production Company, SNEPCo, $1.2bn.

The report revealed that 95% share of revenue after cost goes to the Nigerian Government from each barrel of oil that the SPDC produces.

According to Shell, 90 % of its total number of contracts was awarded to local companies, adding that $1.5bn was spent by the SPDC and SNEPCo on local contracting and procurement last year.

The Chairman of Shell companies in Nigeria from 2010 to 2015, Mr. Mutiu Sunmonu, said in the report that onshore oil divestments by the SPDC had created a perception to some that Shell was leaving the country.

“In fact, Shell companies remain committed to maintaining the pioneering role we have played in Nigeria for more than half a century. This is clearly illustrated in the deep-water fields of the Gulf of Guinea and the gas value chain in the Niger Delta, where SNEPCo and SPDC are using advanced technology to deliver safe economic projects that unlock Nigeria’s energy potential, while providing jobs and training for local people,” he said.

Despite the challenges in the sector he said there have been improvements over the years and described the wider Nigerian oil and gas industry as “an operating environment that remains among the most volatile in the global oil and gas industry.”

“I would like to highlight two major challenges. First, crude oil theft has been the defining sustainability challenge during my time as chairman. The SPDC has taken numerous measures to limit the impact of this criminality within its areas of operation. It has also raised awareness of the scale of the problem both within Nigeria and internationally,” he said.