The Royal Dutch Shell Plc has said that Shell Petroleum Development Company of Nigeria Limited paid a total of of $48bn (N9.46tn) in royalties and taxes to the Federal Government from 2010 to 2014.
According to the company, 95 per cent share of its revenue after cost goes to the Nigerian Government.
In its ‘Sustainability Report 2014’ released on Friday, the Chairman of Shell companies in Nigeria from 2010 to 2015, Mr. Mutiu Sunmonu, said “In fact, Shell companies remain committed to maintaining the pioneering role we have played in Nigeria for more than half a century.
“This is clearly illustrated in the deep-water fields of the Gulf of Guinea and the gas value chain in the Niger Delta, where SNEPCo and SPDC are using advanced technology to deliver safe economic projects that unlock Nigeria’s energy potential, while providing jobs and training for local people.
Summonu while highlighting the challenges faced by the company said “Nigerian oil and gas industry is an operating environment that remains among the most volatile in the global oil and gas industry.”
“I would like to highlight two major challenges. First, crude oil theft has been the defining sustainability challenge during my time as chairman. The SPDC has taken numerous measures to limit the impact of this criminality within its areas of operation. It has also raised awareness of the scale of the problem both within Nigeria and internationally.”
He also noted that the increase in production has led to increase in flared gas, he said “However, in 2014, an increase in levels of oil production has resulted in the volumes of flared gas increasing by 12 per cent over the year, and an increase of nine per cent in flaring intensity.
“A challenging operating environment and shortfalls in funding from the government-owned Nigerian National Petroleum Company have resulted in delays to the completion of a number of gas-gathering projects.”