The Nation Newspaper

Tag: shell

  • Shell laments significant decline in production

    Shell laments significant decline in production

    Shell’s Nigerian country chair Osagie Okunbor has said recent attacks by militants in the country had contributed to a “significant decline” in production levels.

    A number of companies oil sites have been attacked by the Niger Delta Avengers.

    Okunbor said unrest in the region had impacted on production, delays to projects and loss of government revenue.

    He said: “These illegal acts also have severe environmental consequences. In addition, security threats mean both our development and operating costs are higher than in many other operating environments globally. Ultimately, it means that available funds for the industry don’t stretch as far as they would, if we had a safer operating environment.

    “It is clear that security of our assets and people is key to our operations and the federal government has rightly said it will work to ensure a safe and secure working environment for everyone, not just international oil companies”.

    The Shell boss said in 2015, theft of crude oil on Shell assets was 25,000 barrels of oil per day, compared with 37,000 bpd in 2014.

    The number of sabotage-related spills declined to 93 incidents compared with 139 in 2014.

    In 2015, the decrease in theft and spills was also in part due to divestments in the Niger Delta.

    He added that both theft and sabotage were still the cause of about 85% of spills from Shell’s pipelines in the region.

    Based on survey data compiled by Reuters for the month of May, OPEC crude oil out has fallen by 120,000 barrels per day—a drop largely attributed to the resurgence of Niger Delta militancy.

  • Shell links workforce reduction to BG’s acquisition

    Shell links workforce reduction to BG’s acquisition

    The Royal-Dutch Shell has linked the planned reduction of its group workforce to the recent acquisition of the BG Group, and its earlier strategies to reduce cost and focus on more core businesses.

    Spokesman of Shell Petroleum Development Company Limited (SPDC), Precious Okolobo in an emailed response, said: “Our integration with BG provides an opportunity to accelerate our performance in this ‘lower for longer’ environment. We need to reduce our cost base, improve production efficiency and have an organisation that best fits our combined portfolio and business plans. As a result, we will reduce the size of the organisation supporting our UK and Ireland Upstream business by around 475 people. We will look to implement the majority of this change during 2016.

    “Following these changes, Shell will still remain a key employer in the North East of Scotland with around 1,700 employees. The reductions announced in Aberdeen are part of a global programme of job reductions in Shell. Last year, in response to the oil price downturn, we made the tough but necessary decision to remove 7,500 Shell staff and direct contractor roles and this has now been completed. Separately, as previously announced, a further 2,800 global staff reductions were initially identified as part of the BG integration, which is now well underway.”

  • PETAN seeks better collaboration with Shell on Nigerian Content

    PETAN seeks better collaboration with Shell on Nigerian Content

    The Petroleum Technology Association of Nigeria (PETAN) has praised  Shell for contributing to the development of the Nigerian Content in the oil industry and for seeking more collaboration.

    During a visit to the Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), Bayo Ojulari,  the association chairman, Bank-Anthony Okoroafor, said: “Most of us have our roots here. The relationship with Shell has given us the required foundation and encouragement and we are now in a position to add value to the operations of oil companies in Nigeria,” Okoroafor said.

    Okoroafor, who was elected last month, said the members were on a familiarisation tour of international and national oil companies to brief them on the rebranding of the group.

    The group, he said, will play a more active role in the development of the industry, especially at this time of cost pressures.

    He said PETAN had created target groups to liaise with oil companies, including SNEPCo, and would like to proffer solutions to challenges of projects, cost and production.

    He said: “PETAN is already working with Shell Petroleum Development Company (SPDC) on an internship programme where graduates learn skills on one-year attachments to our companies and it will be very good to do the same with SNEPCo.”

    Ojulari praised the PETAN in the development of the oil and gas industry in Nigeria. He said: “The new executive has come at a critical time in our industry. I would advise PETAN members to collaborate more effectively so they can present a unified front that will be competitive in the global oil industry.”

    The SNEPCo chief was accompanied by his leadership team, who highlighted the various areas of potential collaboration with PETAN, including project implementation, cost leadership and value-adding service to the industry.

    Shell companies in Nigeria contributed very well to developing the country’s human capital and contracting capacity.  Last year, 93 per cent of contracts were awarded to Nigerian companies. Shell companies in Nigeria won PETAN’s Local Content Operator of the Year awards in 2013 and 2015.

  • Dickson writes Buhari over non- payment of tax by oil firms

    Dickson writes Buhari over non- payment of tax by oil firms

    Bayelsa State Governor, Seriake Dickson, has written President Muhammadu Buhari, over alleged default in the payment of taxes and levies by oil companies operating in the state.

    Dickson appealed to President Buhari to use his good offices to prevail on the companies concerned, who are licencees of the Federal Government, to comply with the laws of the state and that of the country.

    The governor’s letter obtained by our reporter in Abuja, chronicled the various negative exploration activities of the oil and gas companies operating in the state over a long period of time.

    Dickson said the affected companies refused to pay land use service charges and developmental levies thereby impinging on the environment especially through spillage.

    He regretted that the oil majors have not been realistic by contributing proportionally to the economy and development of the state, a situation, he said must be reversed.

    He listed Shell, Nigerian Agip Oil Company Limited (NAOC), Chevron Nigeria Limited (CNL), Consolidated Oil, Conoil Producing, Brass LNG and Aiteo as the defaulting companies.

     

  • Shell remits $42b to Fed Govt as revenue

    Shell remits $42b to Fed Govt as revenue

    Shell Petroleum Development Company (SPDC) and the Joint Venture (JV) partners remitted $42 billion to the Federal Government between 2011 and 2015, The Nation has learned.

    This is contained in Royal Dutch Shell’s 2015 Sustainability Report released yesterday. The oil giant said it also paid royalties and corporate taxes worth $1.1 billion to the government last year. Of the amount, SPDC paid $0.6 billion. Shell Nigeria Exploration and Production Company (SNEPCo) paid $0.5 billion.

    The report said that Shell Companies in Nigeria (SCiN) awarded 93 per cent of its total contracts during the year under review to indigenous firms and spent $0.9 billion on local contracting and procurement, adding that 94 per cent employees of SCiN are Nigerian.

    It said out of the $145.1 million paid to Niger Delta Development Commission (NDDC) in 2015, SPDC JV and SNEPCo contributed $62.3 million, and also spent $50.4 million on social investment projects.

    According to the report, gas flaring volume from SPDC JV facilities in Nigeria was reduced by 85 per cent between 2002 and 2015. The flaring intensity (the amount of gas flared for every tonne of oil and gas produced) was reduced by around 70 per cent over the same period.

    Managing Director of SPDC and Country Chair of SCiN, Osagie Okunbor said: “Flaring from SPDC facilities decreased in 2015, due to divestments and improved operations at our assets; progress was also made on several gas-gathering projects, which are now at advanced stages of completion. For example, we have installed a gas-gathering plant at the Oloma Station that is ready for final commissioning. However, the planned start-up dates for two other major gas gathering projects have been delayed due to lack of adequate JV funding from our government partner.

    “The flaring of natural gas produced with oil wastes valuable resources and contributes to climate change. At Shell, we are working hard to minimise flaring associated with oil and gas production.

    “SCiN recorded a total of seven fatalities in 2015, in four separate incidents. In one incident, four people lost their lives while working to remove an illegal tap point from a pipeline in the Niger Delta. The incident is being investigated, in line with our procedures, and we are taking steps to learn from what happened. This loss of life is a deeply troubling turn for SCiN after no fatalities in 2014.

    “Crude oil theft is a major issue, with attacks not only on pipelines but increasingly on flowlines and well heads.”

    Its Chief Executive Officer, Ben van Beurden noted that it was a significant year for the global community with the adoption of the historic Paris Agreement by 195 countries demonstrating a commitment to bring about a lower-carbon energy system.

    “The year also presented Shell with a difficult business environment. A low oil price meant making some tough choices about our long-term investments. As we continue on this path, I am determined that operating our business responsibly – with respect for people, their safety, communities and the environment – remains a priority. Sustainability, for me, is essential to our responsible operation and to being a valued and respected member of society.

     

     

     

     

    “However, seven people lost their lives at our operations in Nigeria. This deeply saddens me and my thoughts are with the families of those involved. Incidents like these are simply unacceptable.

    “We made progress in our environmental performance: spills were reduced by around 30 per cent while our total greenhouse gas emissions decreased. We are also making headway to end continuous flaring by 2030, which helps to reduce our methane and carbon dioxide (CO2) emissions,” he added.

     

  • Bayelsa shuts Shell facility over building permit

    The Bayelsa State Government on Monday said it had sealed the premises of Gbaran Ubie Integrated Oil and Gas facility owned by the Shell Petroleum Company of Nigeria (SPDC).

    The development was contained in a statement issued by the Executive Secretary of Bayelsa State Physical Planning and Development Board, Chief Boro Ige-Edaba, through Mr. Daniel Iworiso-Markson, the Chief Press Secretary (CPS) to the state Governor, Mr. Seriake Dickson.

    Ige-Edaba said the closure of the company located in Gbarantoru in Yenagoa local government area of Bayelsa State, was following an eviction order issued by the State High Court in Yenagoa.

    He said the order granted the government leave to evict SPDC and all occupants of the premises to enable the board carry out environmental, health, technical integrity and safety checks on the facility.

    He said the facility was built without a permit and called development permit as required by law.

    He said the court directed the state Commissioner of Police, the Commander of the Joint Task Force (JTF) and all security agencies to facilitate the enforcement of the eviction.

  • Shell declares force majeure

    Shell declares force majeure

    The Shell Petroleum Development Company of Nigeria Limited (SPDC) has declared force majeure on Forcados lifting.

    A statement issued by the company noted that the force majeure was declared on Sunday, following the disruption in production caused by the spill on the Forcados Terminal subsea crude export pipeline the previous day.

    The spokesman Precious Okolobo saod SPDC is intensifying efforts on containment and oil recovery from the February 14, 2016 spill, while also finalising repair plans. The Forcados terminal has the  capacity to export 400,000 barrels of crude oil per day.

  • Shell unable to trace source of Delta oil spill

    Shell unable to trace source of Delta oil spill

    The Shell Petroleum Development Company (SPDC) is yet to identify the source of the oil spill caused by attacks on the Forcados Crude Oil Export Pipeline in Burutu, Delta State.

    A new militant group, Niger Delta Avengers (NDA), in a statement, claimed responsibility for the latest attack. Attackers of the facility claimed to have struck at about 10:55pm on Saturday.

    However, a spokesman of the oil giant, in an email response, said the SPDC was employing the services of industry operators and other stakeholders to determine what went wrong and the extent of damage.

    “SPDC is investigating the source of a crude oil spill which was observed on water around Forcados Terminal on Sunday (February 14). This initial investigation will enable the company to quickly determine what suitable response is further needed.

    “SPDC JV and third party production into the terminal is being suspended as a precautionary measure. SPDC has activated its Emergency Response and Oil Response teams to manage the incident, while booms and other oil containment resources have been deployed to the area to try to stop the spread of spilled oil. The support of industry group, Clean Nigeria Associates (CNA) has been enlisted for a comprehensive response to the spill.

    “The relevant authorities including security agencies have been informed of the incident, preparatory to a joint investigation visit which will determine the cause and volume of oil spilled”, the email response said.

  • Shell to cut 10, 000 jobs

    Shell to cut 10, 000 jobs

    Royal Dutch Shell has confirmed it is cutting 10,000 jobs amid its steepest fall in annual profits for 13 years.

    It made $1.8bn (£1.23bn) for the fourth quarter of the year, compared with a $4.2bn profit for the same period the year before.

    Full-year 2015 earnings were $3.8bn, compared with $19bn in 2014, the BBC reports.

    The oil firm indicated it would report a massive drop in profits two weeks ago and said it would cut 10,000 jobs, partly thanks to its takeover of BG.

    Royal Dutch Shell’s chief executive, Ben van Beurden, said: “The completion of the BG transaction, which we are expecting in a matter of weeks, marks the start of a new chapter in Shell, rejuvenating the company and improving shareholder returns.

    “We are making substantial changes in the company, as we refocus Shell, and respond to lower oil prices. As we have previously indicated, this will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies.”

  • NUPENG cautions on sack in Chevron, Shell

    NUPENG cautions on sack in Chevron, Shell

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) is worried over the purported sack threat by Chevron and Shell that will affect about 18,500 workers globally.

    NUPENG, in a statement, signed by its National President, Comrade Igwe Achese, said it is a sack too many. He described the sack threat, adduced to dwindling oil prices, as alarming.

    He called on the Federal Government to halt the threat of loss of jobs in Nigeria by multinational companies. He wondered why Chevron and Shell should sack workers when they have fully divested from on-shore oil fields.

    The unions added that it would be morally unjustified for Chevron and Shell to retrench oil workers in Nigeria, as they are carting away profits made from deep oil shores and joint venture gas projects.

    NUPENG, therefore, condemned in its entirety the impending sack, noting that it would not work with the efforts of the Buhari administration to generate employment instead of job losses.

    NUPENG added that it would amount to derailing the efforts of the government to provide jobs for Nigerians. It stated that the oil giants should cut cost by employing Nigerians in positions where expatriates hold sway and are paid 10  times what Nigerians are paid.

    The union warned that it might be forced to embark on industrial action if the Federal Government, through the regulatory agency, Nigerian National Petroleum Corporation (NNPC) fails to stop Chevron and Shell from sending oil workers in Nigeria to the unemployment market.