Nigeria earned N4.65tn from Shell JV in five years – Report

The Shell Petroleum Development Company of Nigeria Limited-operated Joint Venture contributed $31bn (N4.65tn) to the Federation Account between 2006 and 2010, the company said in its just released “Briefing Notes.”

The report said, “The joint venture operated by the SPDC has contributed about $31bn to the government in the past five years (2006–2010).”

According to the document, the Federal Government received about 95 per cent of the revenue after costs from the SPDC-operated JV.

It also added that Shell Nigeria Exploration and Production Company Limited, operating Shell’s offshore business in the deep water, paid about $3.8bn in tax and royalties over the last five years.

Shell said that in 2010, the SPDC-operated ventures in Nigeria produced an average of 960,000 barrels of oil equivalent per day, which was about 21 per cent of Nigeria’s estimated total oil and gas production.

It further explained that about 758,000 barrels of oil equivalent per day of this volume came from the SPDC-operated joint venture, while SNEPCo accounted for the balance.

The company further said that in 2010, Shell Nigeria Gas Limited supplied natural gas from fields in the Niger Delta to more than 50 customers in industrial centres in Ogun and Abia states, while SPDC was the major gas supplier to the Nigeria Liquefied Natural Gas plant from its various fields.

It said, “The operations of the Shell companies in Nigeria have an important direct impact on the economy. In 2010, Shell-run companies awarded contracts worth more than $947m to Nigerian companies, representing 94 per cent of the total spending for the year.

“As far as possible, Shell companies in Nigeria aim to use Nigerian contractors and hire workers from the local communities where they operate. As of December 2010, SPDC and SNEPCo employed around 6,000 direct employees and contractors – about 90 per cent of them Nigerians. Our projects help create tens of thousands more jobs with contractors and in supporting industries.”