SPDC JV Paid N5.31tr to FG in Four Years, Says Report


Sylvester Idowu in Warri

Shell Petroleum Development Company (SPDC) joint partner’s economic
contribution to the federal government between 2013-2017 stands at
$23 billion (N5.31 trillion).

The monies were paid under the joint venture agreement between
government-owned Nigerian National Petroleum Corporation NNPC (55%
share), SPDC (30% share), Total E&P Nigeria LTD (10%) and the Eni
subsidiary Nigerian Agip Oil Company Limited (5%).

Shell’s share of royalties and corporate taxes paid to the federal
government in 2017 stood at approximately $1.1billion (N333.33
billion), SPDC $0.4billion; SNEPCo $0.7 billion).

This was contained in the latest edition (April 2018) of “Shell in Nigeria
Briefing Notes” which was presented to journalists in Warri, Delta
State over the weekend.

The copy of the document, which was obtained by THISDAY, indicates that
Shell also paid $1.9 billion to the Niger Delta Development Commission (NDDC) since inception in 2002.

According to the report, the oil bearing communities’ social investment
funds for community-driven projects under the Global Memorandum of
Understanding (GMoU) was $228 million (N41.10billion).

The company stated that 94 per cent of Shell contracts was awarded to
Nigerian companies in 2017, while 631,000 barrels of oil equivalent per
average daily production by Shell-operated ventures in Nigeria in

As part of effort to support local content, develop human resources,
Shell in 2017 spent about $0.76 billion (N230.30 billion) on contracts
awarded to Nigerian companies.

The report said between 2012 and 2017, the Nigeria Liquefied Natural
Gas Company Limited (NLNG) of which Shell contributes 25.6% share, has
committed over $45 million (N14.19 billion) to social investment
projects in the Niger Delta region.

According to the report, Shell is also contributing $49 million (15.36
billion) to the construction of the 34-kilometre Bonny-Bodo road
project estimated to cost more than $190 million (N60 billion) as part
of the federal government socio-economic integration of the Niger Delta

The report stated that Shell Nigeria Gas Limited (SNG), another of its sister
firms, supplies natural gas to about 90 industrial and commercial
customers, majority of which were in Ogun, Rivers and Abia States,
adding that the gas is used for power generation and for the
manufacturing of domestic products.

The presentation was made by senior SPDC officials including Head,
Government and Community Relations, Alaye Dokubo; Head Community
Interface, Evans Krukrubo, Community Interface Coordinator,
Jerry-Gaultney Udjo, as well as Shell Petroleum Development Company,
Media Relation Manager, Bam Olugbenga Odugbesan, (SPDC West)’s Media
Relations Officer, Mr. Joseph Obari and Precious Okolobo, among others.

Before the presentation, SPDC General Manager, External Relations, Mr.
Igo Weli, had said SPDC is still very active in Delta State contrary to
widespread belief that it had relocated from the state.

To confirm the company’s presence in Delta State, he disclosed that
Shell operates Joint Ventures and has implemented wide ranging projects in
the state which included the disbursement of N1.88 billion to Global
Memorandum of Understanting (GMoU) with cluster host communities.

He also disclosed that a professorial chair was established at the Federal
University of Petroleum Resources, Effurun (FUPRE) as part of Shell’s
continuous operations 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 to
mark Nigeria’s centenary anniversary.

“The projects shows our continuous presence and interest in the
development of Delta State. While it is true that SPDC divested from a
number of assets in line with business strategy, and in support of the
participation of more Nigerian companies in the oil and gas industry,
we are still active in Delta State,” Weli said.

He gave, as example that SPDC still operates Forcados Terminal,
Flowstations, gas plants and a network of pipelines in the state.