The Shell Companies in Nigeria have released the April 2018 report on its activities and economic contribution to the country.
The briefing notes revealed that $23 billion(N5.31 trillion) was paid to the federal government between 2013-2017, $1.9 billion paid to the Niger Delta Development Commission(NDDC) since inception in 2002 while the oil bearing communities social investment funds for community-driven projects under the Global Memorandum of Understanding(GMoU) was $228 million
The company stated that 94 per cent of Shell contracts was awarded to Nigeria companies in 2017 while 631,000 barrels of oil equivalent per average daily production by Shell-operated ventures in Nigeria in 2017. Contrary to insinuations, the company said its headquarters was already located in Port Harcourt in the Niger Delta
The 2018 Shell Nigeria briefing notes was done by Evan Krukrubo, who represented the SPDC, General Manager, External Relations, Igo Weli who spoke on the companies activities in Delta state.
According to him, “Shell operated Joint Venture has implemented wide ranging projects in Delta State, disbursing a total of N1.88 billion to Global Memorandum of Understanding (GMoU) clusters and establishing a Professorial Chair at the Federal University of Petroleum Resources, Effurun (FUPRE,) as it continues to operate in the state and contribute to its development. These are in addition to the donation of N600 million facilities to five schools under a Youth Sports and Athletics Development Project (YSADP,) to mark Nigeria’s centenary anniversary.
“These projects show our continuous presence and interest in the development of Delta State,” said General Manager, External Relations, SPDC Igo Weli. “While it is true that SPDC divested from a number of assets in Delta State in line with our business strategy, and in support of the participation of more Nigerian companies in the oil and gas industry, we are still active in the state, for example, operating Forcados Terminal, flow stations, gas plants and a network of pipelines. There is no better way to relay this message than undertaking projects and initiatives that are helping to rebuild lives and communities in the state.”
“The GMoU funding covers the three clusters currently active in Delta State since the inception of the concept in 2006. The Cluster Development Boards (CDBs) like their counterparts in other parts of the Niger Delta, are implementing health and educational projects among others.
“The centenary project in Delta State which was inaugurated this month includes the development of an athletic curriculum by Africare, an international NGO, using the American National Collegiate Athletic Association standards, the provision of facilities for long/triple jump, high jump, shot put, javelin, discus and hammer throw in five schools as well as the construction of a 400m six-lane rubberised track at Government College, Ughelli. These facilities have been installed at the highest standards. A key component of the project was the inclusion of 283 athletic and leadership training sessions, academic performance tracking and mentoring. A total of 150 students from across the five project schools benefitted from the leadership programme. Delta State Governor, Senator Ifeanyi Okowa had said that the project marked a major turning point in the lives of students and communities.
“The Professorial Chair in Light Weight Automobile Engine Development was activated at FUPRE in December last year and is the latest of six established by SPDC JV. The Chair at Effurun is expected to contribute to the growth of local content in Nigeria’s automobile industry. In a bid to boost employment especially among youths, more than 700 young men and women benefited from Shell’s LiveWIRE initiative between 2003 and 2017. Also, a total of 160 students from Delta State have received the SPDC flagship Cradle-to-Career scholarship awards since they were instituted in 2010. The programme offers fully-funded six-year awards for children from rural communities to attend some of Nigeria’s top secondary schools
“Mr. Weli added: “SPDC JV is always prepared and willing to contribute its quota to the development of its host communities in close collaboration with other stakeholders. It is however, necessary for communities to help create a conducive atmosphere to attract and retain investments in the Niger Delta. Violence, vandalisation of pipelines and other anti-social behaviours will not only discourage investments but also impede the holistic development we badly need in the Niger Delta.”
Shell has the following business interests in the Nigerian oil and gas sector:
The Shell Petroleum Development Company of Nigeria Limited (SPDC)
SPDC is the largest Shell company in Nigeria and produced the country’s first commercial oil exports in 1958 in Oloibiri, Bayelsa State. SPDC is the operator of a joint venture (the SPDC JV) between the government-owned Nigerian National Petroleum Corporation – NNPC (55% share), SPDC (30%), Total E&P Nigeria Ltd (10%) and the ENI subsidiary Nigerian Agip Oil Company Limited (5%). It is focused on onshore and shallow water oil and gas production in the Niger Delta.
The SPDC JV’s assets include:
- Around 1,400 operated oil and gas wells
- A network of approximately 4,000 kilometers of oil and gas pipelines and flowlines
- Nine gas plants and two major oil export terminals (Bonny and Forcados)
- One power plant (Afam VI).
Shell Nigeria Exploration and Production Company Limited (SNEPCo)
SNEPCo was incorporated in 1993 to develop Nigeria’s deep- water oil and gas resources. It is a 100% Shell-owned company and holds interests in four deep-water blocks, under the terms contained in a Production Sharing Contract (PSC). SNEPCo operates OML-118 (including the Bonga field, Shell interest 55%) and OML-135 (Bolio and Doro, Shell interest 55%). SNEPCo also has a 50% interest in OPL-2451 (Zabazaba, Etan), which is operated by the ENI subsidiary Nigerian Agip Exploration Limited and a 43.75% interest in OML-133 (Erha) operated by the ExxonMobil subsidiary Esso Exploration and Production Nigeria (Deepwater) Limited.
- Bonga was Nigeria’s first oil and gas project in water depths over 1,000 metres
- It increased Nigeria’s oil production capacity by 10% when it began producing in 2005
- The Bonga floating production, storage and offloading (FPSO) vessel has a total production capacity of 225,000 barrels of oil per day and 210 million standard cubic feet of gas per day
- Bonga helped create the first generation of Nigerian oil and gas engineers with deep water experience and stimulated the growth of support industries.
Nigeria Liquefied Natural Gas Company Limited (NLNG)
NLNG is a joint venture incorporated in 1989 to produce LNG and natural gas liquids for export. It was Nigeria’s first LNG project. Shell holds a 25.6% share, and its partners are NNPC (49%), a subsidiary of Total E&P (15%) and an ENI subsidiary (10.4%).
- The NLNG plant at Bonny Island has six processing units (trains) with total processing capacity of 22 million tonnes a year of LNG and up to 5 million tonnes of natural gas liquids (LPG and condensate) from 3.5 billion standard cubic feet per day of natural gas
- Plans for building a seventh train (train 7) that will increase the total production capacity to 30 million tonnes a year of LNG are currently in progress
- NLNG accounted for approximately 7% of the world’s total LNG production capacity in 2017
- NLNG is serviced by a fleet of 23 LNG vessels including six new vessels constructed in South Korea
- LNG cargos are shipped to Atlantic Basin countries such as Spain, France, Italy, Turkey, Mexico and the US, as well as markets in Asia.
Shell Nigeria Gas Limited (SNG)
SNG was incorporated in 1998 to promote gas as a more reliable, cleaner and cost-effective alternative to liquid fuels for the Nigerian domestic market. It is a 100% Shell-owned company.
- The first and so far, only wholly-owned subsidiary of an international oil company involved in domestic gas distribution in Nigeria
- SNG operates a pressure reduction and metering station, and a gas transmission and distribution network of approximately 125 kilometers that distribute natural gas to about 90 industrial and commercial customers, majority of which are in Ogun, Abia, and Rivers States of Nigeria
- The company’s employees are all Nigerian and SNG is the only gas distribution company in Nigeria whose facility is ISO 14001 Certified.
