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SHELL INTERESTS IN THE NIGERIAN OIL & GAS SECTOR:

Shell Petroleum Development Company of Nigeria Limited (SPDC) onshore and shallow water oil and gas; operator and 30% shareholder in SPDC Joint Venture

Shell Nigeria Exploration and Production Company Limited (SNEPCo) deep water oil and gas; operator of Bonga 

Nigeria Liquefied Natural Gas Company Limited (NLNG) LNG joint venture (25.6% Shell share)

Shell Nigeria Gas Limited (SNG) domestic gas distribution

Shell has the following business interests in the Nigerian Oil and Gas sector:

THE SHELL PETROLEUM DEVELOPMENT COMPANY OF NIGERIA LIMITED (SPDC)

SPDC is the largest Shell company in Nigeria and produced the country’s first commercial oil exports in 1958. SPDC is the operator of a joint venture (the SPDC JV) between the government-owned Nigerian National Petroleum Corporation – NNPC (55% share), SPDC (30%), Total E&P Nigeria Ltd (10%) and the ENI subsidiary Nigerian Agip Oil Company Limited (5%). It is focused on onshore and shallow water oil and gas production in the Niger Delta.

The SPDC JV’s assets include:

  • Around 1,100 producing oil wells
  • A network of approximately 4,000 kilometers of oil and gas pipelines and flowlines
  • Nine gas plants and two major oil export terminals (Bonny and Forcados).

SHELL NIGERIA EXPLORATION AND PRODUCTION COMPANY LIMITED (SNEPCo)

SNEPCo was incorporated in 1993 to develop Nigeria’s deep water oil and gas resources. It is a 100% Shell-owned company and holds interests in four deep water blocks, two of which it operates: OML-118 (Bonga field) and OML-135. SNEPCo also has a 50% interest in OPL-245, which is operated by the ENI subsidiary Nigerian Agip Exploration Limited and a 43.75% interest in OML-133 operated by the ExxonMobil subsidiary Esso Exploration and Production Nigeria (Deepwater) Limited.

  • Bonga was Nigeria’s first oil and gas project in water depths over 1,000 metres
  • It increased Nigeria’s oil capacity by 10% when it began producing in 2005
  • The Bonga Floating Production, Storage and Offloading (FPSO) vessel has a total production capacity of 200,000 barrels of oil per day and 150 million standard cubic feet of gas per day.

NIGERIA LIQUEFIED NATURAL GAS COMPANY LIMITED (NLNG)

NLNG is a joint venture incorporated in 1989 to produce LNG and natural gas liquids for export. It was Nigeria’s first LNG project. Shell holds a 25.6% share, and its partners are NNPC (49%), a Total subsidiary (15%) and an ENI subsidiary (10.4%).

  • The NLNG plant at Bonny Island has six processing units (trains) with total processing capacity of 22 million tonnes a year of LNG and up to 5 million tonnes of natural gas liquids (LPG and condensate) from 3.5 billion standard cubic feet per day of natural gas
  • NLNG accounts for approximately 7% of the world’s total LNG production capacity in 2015
  • SPDC JV in collaboration with NLNG & ExxonMobil supplies power to approximately 12,000 premises on Bonny Island via a rural electrification scheme. The initiative has in recent years provided homes in Bonny communities with 98% uninterrupted power supply.

SHELL NIGERIA GAS LIMITED (SNG)

SNG was incorporated in 1998 to promote gas as a more reliable, cleaner and cost effective alternative to liquid fuels for the Nigerian domestic market. It is a wholly-owned subsidiary of Royal Dutch Shell.

  • The first and so far only wholly-owned subsidiary of an international oil company involved in domestic gas distribution in Nigeria
  • SNG operates a pressure reduction and metering station, and a gas transmission and distribution network of approximately 125 kilometres
  • The network serves 87 industrial customers, majority of which are located in Ogun, Abia, and Rivers States of Nigeria.