Shell contributes over N7trn to FG’s revenue in 5 years – Sunmonu

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Mr.  Mutiu Sumonu, Country Chairman, Shell Petroleum Development Company (SPDC), Nigeria, says the oil exploring and prospecting company contributed about 44 billion dollars (N7.26 trillion) to the Federal Government’s revenue.

Sumonu, who gave the SPDC’s tax profile at a dinner with Energy correspondents on Tuesday in Lagos, said the amount was paid between 2009 and 2013.

He said that Shell Nigeria Exploration and Production Company Ltd (SNEPCo), which operates in deep waters, contributed an excess of 26 billion dollars (N4.29 trillion) in the last five years.

In its 2013 report, Shell said the Federal Government received about 95 per cent of its revenue after cost from the SPDC joint venture, including income from its majority shareholders via the state-owned energy company NNPC.

“SPDC operated ventures in Nigeria produced an average of 693,000 barrels of oil per day, about 535,000 billion barrel came from the SPDC joint venture, while ‎SNEPCo accounted for the balance of 158,000 barrels per day,’’ Somonu said.

According to him, Shell Nigeria Gas Ltd supplied natural gas from fields in the Niger Delta to more than 70 customers in Rivers, Ogun and Abia States.

The SPDC joint venture remains the major gas supplier to the Nigeria Liquefied Natural Gas plant, Sumonu added.

He said that Shell companies in 2013 awarded contracts worth about 1.5 billion dollars (N247 billion) to Nigerian companies or 91 per cent of the total number of contracts awarded in the year under review.

“The use of locally manufactured goods and Nigeria service companies in several areas created tens of thousands of jobs for workers in communities around where we operate.

“As at December 2013‎, SPDC and SNEPCo directly employed around 4,000 people, while almost 95 per cent of them 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.

Sumonu also said that Shell had been actively promoting projects in the Niger Delta that support small businesses, agriculture, training, education, health and capacity building.

He said that most of their contributions in capacity development and wealth creation empowerment were done in partnership with the government and the Niger Delta Development Commission.

“In 2013, Shell operations contributed over 180 million dollars or N29.7 billion (Shell share of 69.8 million dollars or N11.52 trillion) to the commission as required by law.

“An additional 104 million dollars or N4.02 trillion (Shell share of over 32 million dollars or N5.28 billion) was directly invested voluntarily by the SPDC joint venture and SNEPCo in addressing socio-economic development challenges in the Niger Delta region,” Sumonu said.

He also said that their investments were in partnership with government agencies, companies and NGOs