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  • Shell divestment: Ondo community cries out over N3.1tr case

    Shell divestment: Ondo community cries out over N3.1tr case

    The Ugbo-Ilaje community in Ondo State has raised the alarm over the plan by Shell Petroleum Development Company of Nigeria Limited (SPDC) to sell its Nigerian onshore oil subsidiary.

    It urged the Federal Government to reject the oil giant’s bid to sell off its assets until it complies with the order of the Federal High Court in Akure.

    The court barred Shell from selling or divesting any of its assets in the country.

    Shell International Company Limited, Shell International Exploration and Production Limited, Attorney-General of the Federation and the Nigeria National Petroleum Corporation Limited (NNPCL) are the respondents.

    The applicants, who sued for N3.1trillion, are praying the court to enforce their rights and to order the remediation of their environment allegedly damaged by the oil spillage of the first and second respondents’ ruptured pipelines.

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    The applicants filed the ex-parte motion to stop Shell from divesting so as not to render the case nugatory/academic should the verdict go in their favour.

    Justice T. B. Adegoke had restrained the SPDC and four others from selling, allocating, vandalising and or disposing of any of their assets/properties including official structures, oil wells, oil fields, installations, vehicles, equipment, investments, offshore or onshore or any of its properties in any part of Nigeria.   

    The court ruled that the order would subsist until the hearing and determination of the suit filed against them by indigenes of Ugbo-Ilaje, for which they secured a Mareva order against Shell.

    The restraining order followed an ex-parte motion filed and argued by Mohammed Ndarani (SAN) on behalf of the applicants – Prince Afolabi Akinruntan and 1,215 others. The suit is numbered FHC/AK/CS/68/2023.

    “That the ex-parte order will last pending the determination of this suit,” Justice Adegoke ordered on September 28, 2023, adding that the suit shall be given an accelerated hearing.”

  • Shell to sell onshore oil wells for $2.4b

    Shell to sell onshore oil wells for $2.4b

    International oil giant, Shell has reached an agreement to sell its onshore oilfields to a Nigerian-led consortium, Renaissance.

    Under the pact,  Renaissance, a consortium of five companies, including an international energy group, will take over Shell’s onshore oil wells for $2.4 billion. The completion of the transaction is however subject to Federal Government’s approval.

    Shell  gave an  assurance that the divestment will not result in job loss to the current employees.

    The company said  in a statement  the transaction which it earlier  announced via    its official Twitter(now X), would  ”preserve SPDC’s(Shell Petroleum Development Company) operating capabilities and benefit of the joint venture.”

     The statement followed fears by respondents that the move could lead to the loss of jobs by Nigerians working in   SDPC. It said, @Shell: “We do not expect a loss of employment. SPDC’s staff will continue to be employed by the company as it transitions to new ownership.”

    A concerned Nigerian, One Kasali Taoheed@alaobiola,  had asked “ What’s the fate of workers? @ Shell.” Another, ONIOVO @ Lord Riki04,  wrote:” Who will employ daddies, mommies and graduates? Dreams are becoming useless.”

     Also, an advocacy organisation, Policy Alert, was particularly concerned with the degradation of the Niger Delta through oil exploration.

     ”You’re leaving behind in the communities onshore a trail of poisoned environments, destroyed livelihoods and battered health. Who will clean up your 100-year  mess?,  Policy Alert, asked? But, Shell, in the statement, said: “This includes the technical expertise, management systems and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV)*. SPDC’s staff will continue to be employed by the company as it transitions to new ownership. 

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    “Following completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG.”

     The oil giant explained in the statement that it would, on completion of the deal,    focus investment on Deepwater and Integrated Gas positions.

        ”This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions,” the statement quoted the company’s Integrated Gas and Upstream Director,  Zoë Yujnovich, as saying, describing  the move as  ” a significant moment for SPDC, whose people have built it into a high-quality business over many years.”

     Yujnovich said: “Now, after decades as a pioneer in Nigeria’s energy sector, SPDC will move to its next chapter under the ownership of an experienced, ambitious Nigerian-led consortium.

    “Shell sees a bright future in Nigeria with a positive investment outlook for its energy sector. We will continue to support the country’s growing energy needs and export ambitions in areas aligned with our strategy.” 

    According to the statement, “SPDC JV is an unincorporated joint venture comprised of SPDC Limited (30%), the government-owned Nigerian National Petroleum Corporation (55 per cent), Total Exploration and Production Nigeria Ltd (10 per cent) and Nigeria Agip Oil Company Ltd (five percent ).” 

    The acquisition by Renaissance, a consortium made up of ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin has been hailed by economists and other stakeholders in the country. 

    They also made appeals for government support to ensure that the new ownership survives the difficulty of operating in the onshore sector of the oil sector.

    Economist and Chief Executive Officer, the Center for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, expressed satisfaction, maintaining that it is a positive development for the Nigerian economy and indigenous operators in the oil and gas sector. He added that for the new owners to succeed, there is a need for huge government support, especially in ensuring the security of investments in the downstream sector.

    “It is an opportunity for our indigenous investors to take over the downstream sector in the hope that they would be able to manage the situation better and the government should support them as much as possible.”

    He said although the move is commendable given that it is an acquisition by indigenous firms, yet, it is also an indication of the challenges the economy is facing, especially in the aspect of security of investment. “The main problem of onshore is insecurity of assets due to vandalism. The situation in the onshore business has been very bad. As an investor, it is very difficult to operate in that kind of environment where you are not sure of the security of your investment due largely to vandalism. 

    “The offshore is relatively more secure to operate in than the onshore, which is why Shell is divesting. But I am sure that the indigenous new owners would be able to manage it well. Besides, the recent efforts of government in that sector in ensuring better security for all operators is highly commendable and an assurance of a better tomorrow for investments, not only in that sector but in the general and overall economy of the country,” Yusuf added.

    Also reacting, Aradel Energy’s Managing Director/CEO, Adegbite Falade said: “This successful acquisition represents a key step in our journey to becoming a leading energy company in Africa and aligns with our long-term strategic growth plans. It also demonstrates our commitment to our “3R” Strategy of Resilience, Robustness and Redundancy.”

    Yet, for industry watchers, the announcement did not come as a surprise given that the firm has for long indicated its interest in doing so. Since 2021, Shell has sought to sell its Nigerian oil and gas business but plans to remain active in Nigeria’s more lucrative and less problematic offshore sector.

    Besides, Shell’s exit is part of a broader retreat by Western energy companies from the country as they focus on newer, more profitable operations. Exxon Mobil, Italy’s Eni and Norway’s Equinor (EQNR.OL) have struck deals to sell assets in the country in recent years.

    “Shell’s operating plan, outlook and budgets are forecast for 10  years and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCI target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be a significant risk that Shell may not meet this target,” the statement read. 

  • Shell empowers 150 Ogun youth with N68m

    Shell empowers 150 Ogun youth with N68m

    Shell Nigeria Gas Limited has spent N68 million to empower 150 youths in Ogun State.

    The youth were drawn from Shell’s seven host communities in Ogun State, namely, Agbara, Ijoko, Ilogbo, Igbesa, Owode, Itoki and Ota.

    Shell Nigeria Gas Managing Director, Ralph Gbobo, said at the closing of the event held under the Shell Energy Enterprise Development in Ota, that the training ensured the graduates had their skills honed, business acumen sharpened to enable them be entrepreneurs.

    Gbobo, who was represented by the SNG’s Assets Manager, Simeon Eze, said their objective was to create greater impact in their host communities. He advised the youth to remain focused to enable them succeed.

    The facilitator of the programme, Precious Adeho, said the training lasted for five days and that the youth were trained in 14 modules of business.

    Read Also: Shell confirms oil spillages from Peremabiri flowstation in Bayelsa

    Adeho, the Managing Director, Embella Engineering Limited, added that the youth received seed money and materials to enable them start their businesses.

    A trainer, Mr. Temi Alade-Mustapha, scored the graduates high on class attendance and attention to details. She said they should say goodbye to job-seeking as that was not the aim of the programme.

    Ogun State Deputy Governor, Noimot Salako-Oyedele, who was represented by the Ado Odo Local Government Chairman, Saadat Olatunbosun Animashaun, expressed appreciation to Shell for the gesture. She advised the youth to practise what they had learnt.

    Olota of Ota and paramount ruler of Awori Kingdom, Oba Abdulkabir Adeyemi Obalanlege, thanked Shell for the gesture and urged the beneficiaries to make judicious use of the cash and materials given to them.

    A beneficiary, Kudirat Morenike Abdullatif, a fashion designer from Ota, described her experience as “overwhelming”. She equally thanked Shell.

  • Shell confirms oil spillages from Peremabiri flowstation in Bayelsa

    Shell confirms oil spillages from Peremabiri flowstation in Bayelsa

    • Says investigation underway

    The Shell Petroleum Development Company of Nigeria (SPDC) has confirmed the October 3, 2023 oil spill from its facilities at Peremabiri community in Southern Ijaw Local Government Area of Bayelsa State.

    A spokesperson for SPDC, Mr Michael Adande, said on Friday that a Joint Investigative Visit (JIV) to the incident site to unravel the cause and volume of oil discharged was underway.

    JIV is a statutory probe comprising representatives of the operator, host community and regulatory agencies that generates a report to show the cause, extent of pollution after every spill is reported.

    Adande said: “A government-led Joint Investigation Team, including operator and community representatives, is currently on a Joint Investigation Visit (JIV) to the site of the incident to determine the cause and the impact of the incident.”

    Meanwhile the people of Peremabiri have appealed to all tiers of government to prevail on SPDC to immediately clean up the oil spill site

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    The leak from the Diebu Creek flowstation operated by SPDC in Peremabiri discharged a yet to be ascertained volume of crude oil to adjourning areas of the community and the Nun River.

    The Programme Manager, Environmental Right Action/Friends of the Earth Nigeria (ERA/FoEN), Mr. Alagoa Morris, in a reaction, noted that the oil leak had polluted the ecosystem.

    Morris, who is also the Technical Adviser to the Bayelsa Governor on Environment, commended the peaceful disposition of the victims.

    Also, an impacted farmer, Mrs. Yenimi Timipre, bemoaned having her fishing gear stained by crude and rendered useless.

    Also, the Deputy Woman Leader of Peremabiri Community, Mrs Favour Morgan, lamented that the spill had destroyed their fishing nets, traps, crops and polluted the whole aquatic environment and therefore demanded succour.

    Morgan said: “This oil spill has thrown the Peremabiri people into despair; we are into farming and fishing as our means of livelihood and the toxic oil from Shell’s oilfield has damaged our livelihood sources.

    “We are helpless and in dire need of intervention by way of reliefs and succour to farmers and fishermen.”

  • Shell manager commends performance of school in Cambridge A’level

    Shell manager commends performance of school in Cambridge A’level

    The West Assets Manager of Shell Nigeria, Abiodun Busari, has commended Erudite Millennium co-education institution over outstanding performance of his son in Cambridge A level.

    Busari’a son recorded outstanding performance while the school recorded 100 percent pass in the May/June Cambridge A’ Level examination within four to six months.

    Speaking on the recent achievement of the co-educational institution, Busari said he had long learnt about the impressive performance of Erudite Millennium at tutoring students for international examinations following which he recommended friends before his visit.

    He noted that he thought it was such a big place but was amazed when he made the visit mid last year to the co-education, adding that the institution has the right strategy, leveraging tutors with the requisite skills.

    He stated that he was impressed that Erudite Millennium recorded 100 percent pass rate in the May/June Cambridge A’ Level examination within 4 to 6 months, saying his son is a proud member of the set.

    He said: “I had long learnt about the impressive performance of Erudite Milenium Ltd at tutoring students for international examinations following which I recommended friends to them before my visit. I thought it was such a big place but alas, I was amazed when I made the visit mid last year.

    “It was such a small but mighty place where records are broken, Leaders are made and ambitions realized. With the ASUU strike on and not sure of how long it would last, I made a decision to take my son to Erudite Milenium Ltd for the 4IR, SAT, IELTS and Cambridge A ‘Level programmes.

    “Having earlier made his O”Level result, he had to let go of his NECO exams to be able to catch up with that set of 4IR students which was quickly followed with a one-month SAT Boot camp.

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    “To be honest, you have to be above board or at least be strong-willed with enormous strength and passion to beat the marks at Erudite. Classes are run marathon from 7am to 7pm, then preps from 7.30pm to 10.30pm. Sometimes, preps go into the early hours of the following day and this is not a joke. But the good thing is, students do not have to bother about power cut or food as they are well taken care of.

    “Most importantly, Erudite Milenium Ltd has the right strategy, leveraging tutors with the requisite skills. No wonder its recent record of 100 percent pass rate in the May/June Cambridge A’ Level examination within 4 to 6 months, the acclaimed world’s shortest time. My son is a proud member of the set.

    “I was impressed when my son hit the 90 percentile in his SAT result and 8.0 in IELTS both at first sittings. Welldone to the Super Tutors. This does not come without pain, besides the marathon classes and long learning hours, to minimize distractions and instill discipline, laptops and mobile phones of the students had to be confiscated at some point.

    “As simple as the facility is, one thing you cannot take away is the serenity of the environment. Throughout my son’s stay, there was no single experience or complaints of sickness. Thanks to the entire team for the one-family culture. Fantastic!

    “For few times that I paid unannounced visits, I had a strong feel that special motivation and mentoring programmes rendered by the CEO himself also go a long way in helping prepare the students not only physically but mentally. Appreciated. Lest I forget, your ward(s) will be subjected to a qualifying/fitness test few days into the programme as a form of assurance that indeed you are fit to join the family. This is a form of assessment at start so you can compare with the results later.

    “If you want your wards to excel in Cambridge A’ Levels, SAT, IELTS and wish to fasttrack their knowledge of 21st century skills via the 4IR course as well as volunteering programme, Erudite Milenium Ltd is a perfect fit. I do also understand that spaces are always limited hence I implore you to take advantage of the programme and be amongst the privileged few.

    “Above are views of the author. No programme is perfect, there are always areas of improvements. I encourage Erudite Milenium Ltd to continue to seek for feedback via existing and emerging channels towards improvements”.

  • Shell inspires, supports 6,659 youths in Bayelsa, Delta

    The Shell Petroleum Development Company (SPDC) has produced 6,659 entrepreneurs in Bayelsa and Delta states through its enterprise development programme launched in 2003. SPDC’s General Manager, External Relations, Mr. Igo Weli, who spoke in Yenagoa, Bayelsa State capital during a graduation and award ceremony of a new set of beneficiaries said the programme was part of the company’s efforts to solve the problem of youth restiveness in the Niger Delta.

    Weli, who was represented at the colourful event by the SPDC’s External Relations Manager, Swamp West and EA Fields, Evans Krukrubo, said the scheme was instituted to provide alternative incomes to youths.

    He said: “The graduation and award ceremony of the southern swamp associated gas solution enterprise development programme is an initiative targeted at the 23 impacted communities of the Southern Swamp Associated Gas Solution (SSAGS) project in Bayelsa and Delta states.

    “The programme was aimed at inspiring and supporting youths to start their own businesses or expand existing ones. We do this by providing the beneficiaries the requisite training and start-up finance in the belief that legitimate alternative livelihood will enable young men and women to refuse the lure of vices.

    “This enterprise development programme is the flagship of our youth enterprise development programmes and was launched in Nigeria in 2003. The Shell Enterprise Development Programme has now produced 6,580 Niger Delta entrepreneurs, most of whom are employers of labour.

    Read Also: Shell spends N150m on Bonny youths’ capacity devt

    “Some of the beneficiaries are also given the opportunity to play in SPDCs supply chain as vendors and are provided with access to growth capital. With these new graduates, I am happy to announce that the number of Shell enterprise development programme beneficiaries has gone up by 79.

    “These beneficiaries from the SSAGS programme went through the entrepreneurship training, wrote business plans; pitched their business ideas and finally the 49 best performing beneficiaries have been selected”.

    Well said the SPDC injected N2.2 billion into the SSAGS area for community development as top-up funds for the Community Cluster Development Boards in Bayelsa and Delta states.

    He added: “This programme is one of the proof points of the foresight in setting up the Global Memorandum of Understanding (GMoU) model for project delivery to our host communities.

    “This model has proved quite successful as a vehicle for meeting the needs of the people as it engenders co-operations of benefiting communities to deliver the overarching goals of these projects, promoting sustainability, infrastructure and human capital development.

    “From 2013 to this year, SPDC paid the total of N2.2 billion as top-up funds to the eight impacted southern swamp associated gas solution GMoU cluster boards in Bayelsa and Delta states.

    “By this programme, youths of Bayelsa and Delta states are offered a bigger door of opportunities. This is the beginning of a journey that has the potential of launching any of the beneficiaries into international recognition and success. This has happened in other host communities. It can happen here”.

    Well further told the beneficiaries that they had taken first step to a fulfilling career in self-development and skills optimisation.

    “There are huge opportunities ahead of you. The road to becoming a successful entrepreneur is seldom smooth but if the journey is undertaken with the commitment and zeal it deserves, it can be very rewarding”, he said.

    At the ceremony, the 49 youths, who completed the enterprise development programme received start-up grants of N19. 60 million. The beneficiaries were also assisted by the company to register their businesses and to be given certificates of registration from the Corporate Affairs Commission (CAC).

    In his remarks, the Chairman of Iduwini Cluster Development Board, Macpherson Gold, appealed to the beneficiaries to maximise the opportunity offered them to become successful people.

    He said: “I commend SPDC for giving our youths the opportunity to contribute to the growth of our communities. Being self-employed and having source of income is very essential to making positive contributions to one’s community.”

    Also, the Executive Director, Centre for Information and Development, Mrs. Belema Obigwe explained that the beneficiaries received intensive training on business management and assigned to established entrepreneurs for mentorship. .

    She said 130 youths nominated for the scheme by their communities were shortlisted in April last year, adding that out of the number, 79 successfully completed the training while 49  of them passed the assessment tests conducted at the end of the scheme.

    Addressing the beneficiaries, she said: “This journey began in April last year. We went through the applications and the applicants were screened through various stages. We expect that the way you worked with us, the way you gave us your attention, we believe that what we have planted will germinate.

    “This is the beginning of the next phase. Please, continue in the same measure. As a result of your hard work, you are going to have some benefits. Just as the training was not easy, the journey is not easy as well.

    “By being here today, you have entered a contract with Shell Petroleum Development Company of Nigeria. Shell is the sponsor and the initiator of the programme. Your clusters have nominated you to be here. You have entered into an agreement that you will do your best to give us the result for investing in you all”.

    Some of the beneficiaries praised the initiative and commended Shell for establishing the scheme.

    One of the beneficiaries, Robinson Erebi said the training was practical and beneficial.

    “We are grateful for this opportunity. I have tried and failed in businesses twice but in the course of this training, I discovered why I failed and now I am ready to get it done the right way.

    “We were trained in order to support our business ideas and Shell is also supporting us with a start-up capital. So, we are now out of the labour market and they have encouraged us to expand our businesses and to create more jobs,” Erebi said.

  • Shell pays N366b revenue to Fed Govt

    Shell Nigeria Exploration and Production Company Limited (SNEPCo) yesterday said it paid N366 billion last year as revenue to the Federal Government from its exploration activities. It also made another N2.1 billion as statutory payment to the Niger Delta Development Commission (NDDC).

    Its Managing Director, Bayo Ojulari, told reporters at a media launch of the 2019 edition of the Shell in Nigeria Briefing Notes in Lagos. Shell in Nigeria Briefing Notes is an annual publication detailing the activities of the business interests of the global energy giant in Nigeria covering SNEPCo; The Shell Petroleum Development Company of Nigeria Limited (SPDC); Shell Nigeria Gas; and the Nigeria Liquefied Natural Gas.

    According to Ojulari, the payments resulted from oil and gas production by SNEPCo’s flagship investment, Bonga, which is Nigeria’s first oil and gas project in water depths of over 1,000 metres. “At the end of 2018, SNEPCo had produced 819 million barrels of oil from the Bonga field which translates into huge contributions to the Nigerian economy in addition to the significant human capital development of deep-water expertise among Nigerians.”

    He said the pride of SNEPCo was the increase in its Nigerian workforce to over 96 per cent and the creation of Nigeria’s first oil and gas engineers with deep-water experience. “The success story at Bonga is not only that it is Nigeria’s first deep-water project but the fact that Bonga is a Nigerian venture delivered by Nigerians using global expertise and processes offered by the Shell Group that have launched Nigeria into the league of notable deep-water players.”

    Aside the payments to government, SNEPCo is also credited with many social investment initiatives nationwide, particularly in education, health and sports which Ojulari said were considered very critical to the overall well-being of Nigerians. According to him, the company spent over N2.2 billion on various social investment programmes last year.

    “Today, SNEPCo supports 298 undergraduates towards achieving their degrees with beneficiaries across the 36 states of Nigeria and another 375 scholars on full-board secondary school scholarship programme for pupils from public schools into seven top-flight private secondary schools across Nigeria to enhance access to quality education,” he said.

    On the ongoing Bonga South West Aparo, a new project in the Bonga field, Ojulari said the company was making progress with the 150,000 barrel per day capacity project after signing the Head of Terms agreement with partners last February and released Invitation to Tenders to contractors in the same month.

    “We are working with our government and other partners to take the project to a point where we are able to take the final investment decision,” he said.

     

     

  • Climate change: Shell plans $300m investment to tackle Co2 emissions

    Oil giant, Royal Dutch Shell, has said it is investing $300 million over the next three years in natural ecosystems as part of its strategy to act on global climate change including addressing carbon dioxide (Co2) emissions generated by customers when using its products.

    The programme will contribute to Shell’s three-year target beginning in 2019, to reduce its Net Carbon Footprint by two per cent to three per cent, the company said.

    According to the Chief Executive Officer of Royal Dutch Shell, Ben van Beurden,”There is no single solution to tackling climate change. A transformation of the global energy system is needed, from electricity generation to industry and transport.

    “Shell will play its part. Our focus on natural ecosystems is one step we are taking today to support the transition towards a low-carbon future. This comes in addition to our existing efforts, from reducing the carbon intensity of oil and gas operations to investments in renewable sources of energy.”

    The Chief Executive Officer of The Nature Conservancy, Mark Tercek, said: “Last year’s Intergovernmental Panel on Climate Change (IPCC) report was a wake-up call on climate: reducing emissions starts with fossil fuels. Shell’s announcement signals that one of the world’s biggest energy companies is pursuing a decarbonisation strategy with a broad set of solutions, including by investing in nature. By doing so, it is helping to curb global deforestation, restore vital ecosystems, and help communities develop sustainably. Shell is the first in the industry to set near-term targets for the emissions of both its operations and its products; this is clear progress, but it also illustrates how much work remains to achieve Paris climate targets. We look forward to seeing further investment from Shell in these areas.”

    On the road, Shell is making a wider range of transport solutions available to customers. The company is stepping up its investments in lower-carbon options, from battery electric vehicle charging to liquefied natural gas and hydrogen. For example, in Europe, customers can now access 100,000 electric vehicle charge points through New Motion, a Shell company. Shell announced that it is also investing in 200 new rapid electric vehicle charge-points, powered by renewable energy, on its forecourts in the Netherlands, on top of 500 ultra-fast chargers being installed on Shell forecourts across Europe, in partnership with IONITY.

    For customers who drive internal combustion engine vehicles, Shell is making it simpler for them to reduce their carbon footprint through low-carbon biofuels and carbon neutral driving.

    From April 17, customers who file up at a Shell service station in the Netherlands will be able to drive carbon neutral through the use of nature-based carbon credits. This will be done at no extra cost for customers who choose Shell V-Power petrol or diesel, while those who fill up with regular Shell petrol or diesel can participate for an additional 1 cent a litre.

    Shell will roll out similar choices to customers in other countries, starting with the UK later this year. This complements Shell’s existing programme to help business customers avoid or reduce emissions, including supplying lower emission fuels and electric vehicle charging. Shell also offers businesses the opportunity to drive carbon neutral by compensating the CO2 emitted from driving their fleet.

    CO2 emissions generated by participating motorists – as well as from the extraction, refining and distribution of the fuel – will be offset by carbon credits. As one of the most established traders of carbon credits in the world, Shell buys these credits from a global portfolio of nature-based projects, including Cordillera Azul National Park Project in Peru, Katingan Peatland Restoration and Conservation Project in Indonesia and GreenTrees Reforestation Project in the USA. Each carbon credit is subject to a third-party verification process and represents the avoidance or removal of 1 tonne of carbon dioxide.

  • Shell pays Fed Govt, agencies $6.397b

    Over $6.397 billion was paid to the Federal Government and its agencies in 2018 by Shell exploration and production companies in Nigeria, The Nation has learnt.

    In the group are Shell Petroleum Development Company of Nigeria Limited (SPDC) and Shell Nigeria Exploration and Production Company Limited (SNEPCo).

    The payment represents a 48 per cent increase overpayments ($4.322 billion) by the companies.

    The facts formed part of the four documents released yesterday by the Group Chief Executive Officer of the Royal Dutch Shell, Ben Van Beurden, to signal the firm’s renewed commitment to greater transparency.

    The documents are “Shell Sustainability Report”; “Industry Associations Climate Review”; “Nigeria Briefing Notes”; and “Payments to Government”.

    Read also: Shell: why we signed contractor support fund with banks

    “Shell must remain at the forefront of the drive for greater corporate transparency. We will continue to be more open about what we do and why we do it,” said van Beurden, adding: “We want to help people better understand Shell’s performance, values and principles. These reports outline our approach and activities in the crucial areas of sustainability and our relationships with industry associations and governments.”

    In the breakdown of the 2018 payments, the Shell companies paid $3.776 billion to the Nigeria National Petroleum Corporation as production entitlement while $1.286 billion was paid in taxes to the Federal Inland Revenue Service.

    Another $1.253 billion went to the Department of Petroleum Resources for royalties and fees, while $81.5 million was remitted to the Niger Delta Development Commission.

    SPDC Managing Director and Country Shell Companies in Nigeria chair Osagie Okunbor, described the reports as a further testament to Shell’s efforts to increase transparency around activities that are important to investors, governments and civil society.

    “We are irrevocably committed to transparency just as we are to business integrity part of our core values and central tenets of the Business Principles that govern the way we do business,” Okunbo said.

    The Shell Nigeria Briefing Notes detail the activities of the Shell Companies in Nigeria for 2018. These include production, environmental performance, social investment, economic contributions, gas initiatives, deepwater operations, security and Nigerian content development.

    The Industry Associations Climate Review assesses for the first time Shell’s alignment with 19 key industry associations on climate-related policy. The report also details new governance principles to improve how Shell manages its memberships of industry associations on climate-related topics.

    The 22nd edition of the Shell Sustainability Report outlines Shell’s approach to sustainability and covers its social, safety and environmental performance in 2018. It sets out how Shell is playing a role in the transition to a lower-carbon world and its contribution to society, which includes helping to achieve universal access to cleaner, affordable energy.

    In addition, Shell published its 2018 Payments to Governments Report covering 34 countries where it has extractive activities.

  • Shell: why we signed contractor support fund with banks

    The Shell Petroleum Development Company of Nigeria Limited (SPDC) has said access to funds is a major challenge to local contractors that work for the oil giant and the establishment of the contractor support fund is to address that problem.

    In statement, the SPDC spokesman, Bamidele Odugbesan, noted that the memorandum of understanding (MoU), signed by SPDC and the United Bank for Africa (UBA) in Abuja, is a testament to the commitment of Shell to helping indigeneous firms offering services to deliver.

    The $200 million contractor support fund will boost the financial capacity of SPDC’s vendors and suppliers. SPDC’s Director and General Manager, Government and Business Relations, Bashir Bello, who signed the MoU with the United Bank for Africa (UBA), described the initiative as a product of the effort by SPDC and its joint venture partners, including NNPC, Total and Agip to enhance local content and local participation in the oil and gas value chain.

    The fund provides support for contractors to finance projects executed for Shell companies in line with the aspirations of the Nigerian Content Act. To access the fund, the contractors must have a purchase order and meet the bank’s risk assessment criteria. Lack of access to capital hinders many firms from competing for and executing contracts effectively,” said Bello, who signed for SPDC.

    “This funding will enable us to achieve our community content ambition of increasing participation of host communities in the SPDC value chain,” he added.

    The General Manager Energy Bank of UBA, Ebele Ogbue, said the bank was committed to providing support to firms through its partnership with SPDC JV. Ogbue, who signed for UBA, commended the national and community content efforts of Shell firms, noting that UBA was ready to provide the needed financial backing that would empower firms to play more active role in the country’s energy sector.

    The Shell Contractor Funding Scheme started in 2011 with the Shell Kobo Fund, which gave rise to the Shell Contractor Support Fund in 2012. The scheme has been redesigned to address the economic exigencies and to align it with stakeholder needs by merging the two initial initiatives.

    In 2016, Shell signed a $2.2 billion MoU with seven banks that have since then disbursed around $1.5 billion loans to about 372 small- and medium-sized Nigerian suppliers and vendors in the oil and gas industry.