Oil and Gas

Shell pays $48bn to FG in five years

Royal Dutch Shell Plc, the parent company of Shell Petroleum Development Company of Nigeria Limited (SPDC) has said that its subsidiaries paid a total of $48bn (N9.46tn) in royalties and taxes to the Federal Government from 2010 to 2014, The Punch reports.

The oil major, made this known in its ‘Sustainability Report 2014’ released on Friday, and said its share of royalties and taxes paid to the government in 2014 was $3bn (SPDC, $1.8bn and Shell Nigeria Exploration and Production Company, $1.2bn).

Shell said 90 per cent of its total number of contracts were awarded to local companies, adding that $1.5bn was spent by the SPDC and SNEPCo on local contracting and procurement last year.

The Chairman of Shell companies in Nigeria from 2010 to 2015, Mr. Mutiu Sunmonu, said in the report that Shell companies remain committed to developing deep-water fields of the Gulf of Guinea and the gas value chain in the Niger Delta.

Sunmonu also stated that a major challenge for Shell companies in the country was crude oil theft. He however said that Shell’s ability to prevent, respond and clean up spills has improved despite the escalation of crude oil theft and difficulties in securing community permission to access some areas.

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