A Review of the Nigerian Energy Industry

Shell contributes $44bn to Nigeria’s revenue in five years

Mutiu Sunmonu, Shell MD

Kunle Kalejaye 25 June 2014, Sweetcrude, Lagos – The joint venture operated by the Shell Petroleum Development Company of Nigeria Limited, SPDC, has contributed about $44 billion to Federal Government coffers between 2009 to 2013.

In its 2013 report, Shell said the Federal Government received about 95 per cent of the revenue after cost from the SPDC joint venture, JV, including income from its majority shareholding via the state owned energy company NNPC, has been deducted.
Speaking with news men Tuesday in Lagos, Shell Country Chairman, Mr. Mutiu Sunmonu said Shell Nigeria Exploration and Production Company of Nigeria Limited, SNEPCo which operates in the deep water, has contributed in excess of $26 billion to government in the last five years.
In 2013, the Shell country chair explained that the country-operated ventures in Nigeria produced an average of 693,000 barrels of oil equivalent per day, noting that about 535,000 barrel of this volume came from the SPDC JV while ‎SNEPCo accounted for the balance of 158,000 barrels per day.
‎According to him, Shell Nigeria Gas Limited supplied natural gas from fields in the Niger Delta to more than 70 customers in industrial centers in Rivers, Ogun and Abia States while SPDC JV is a major gas supplier to the Nigeria Liquefied Natural Gas plant from its various fields.
Still commenting on the economic impact Shell Companies had in the country in 2013, Sunmonu said contracts worth about $1.5 billion were awarded to Nigerian companies, representing 91 per cent of the total number awarded in the year.
“The use of locally manufactured goods and Nigeria service companies in several areas created tens of thousand of jobs for workers in communities around which we operate.
“As of December 2013‎, SPDC and SNEPCo directly employed around 4,000 people, almost 95 per cent of whom are Nigerians.
“In 2013‎ SPDC supplied about 15 per cent of the country’s domestic gas, most of which was used for power generation,” he said.
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