Mkpoikana Udoma
Port Harcourt — A total of $56.13 million has been earmarked to be paid by Shell companies in Nigeria, as its statutory contribution to Host Communities Development Trusts, HCDTs in 2023, the oil multinational has announced.
Shell companies in Nigeria include the Shell Petroleum Development Company of Nigeria Limited, SPDC JV; the Shell Nigeria Exploration and Production Company, SNEPCo and the Shell Nigeria Gas Limited.
The statutory contribution to Host Communities Development Trusts, as enshrined in section 234 of the Petroleum Industry Act 2021, is to aid in the development of the economic and social infrastructure of communities in the petroleum producing areas, while fundings for HCDTs is 3percent of the actual operating expenditure of the proceeding financial year in the upstream petroleum operations.
Meanwhile, the oil and gas giant has also announced that SPDC JV is transitioning from its existing Global Memorandum of Understanding agreements with host communities to the HCDTs in compliance with the Petroleum Industry Act of 2021.
Media Relations Manager, Shell Nigeria, Mrs. Abimbola Essien-Nelson, in a statement disclosed that Shell Companies in Nigeria invested $39.89million. In education and direct social investments in 2022.
Essien-Nelson Shell Nigeria said the company will continue to support the development of local communities and companies, adding that Shell Companies in Nigeria awarded contracts worth $1.9billion to indigenous companies in 2022 alone.
“The Shell Petroleum Development Company of Nigeria Limited Joint Venture (SPDC JV) is committed to the development of businesses in the Niger Delta. Working with government and community stakeholders, we have supported capacity development in several Niger Delta-owned businesses.
“Shell’s Nigerian businesses will continue to support the development of local communities and companies. In 2022, the SPDC JV, Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Nigeria Gas (SNG) awarded contracts worth $1.9 billion to Nigerian-registered companies.
“Additionally, in 2022, the SPDC JV, SNEPCo and SNG invested $5.6 million in education programmes and contributed $34.29 million in direct social investment. Social investment was mainly in projects related to community, health, education, road safety and enterprise programmes. These projects are often implemented in partnership with local authorities and contractors.
“In addition, $56.13 million has been earmarked to be paid in 2023 by the SPDC JV and SNEPCo for a statutory contribution to Host Communities Development Trusts, which will benefit Nigerian communities. The SPDC JV is transitioning from its existing global memorandum of understanding agreements to the HCDTs in compliance with the Petroleum Industry Act of 2021.”
