Shell in Nigeria
Shell in Nigeria
As one of the world’s leading energy companies Shell plays a key role in helping to meet the world’s growing energy demand in economically, environmentally and socially responsible ways. Shell has a history of over 50 years in Nigeria and the largest footprint of all the international oil and gas companies operating in the country.
Shell has been active in Nigeria since 1937. Shell companies and investments have played a pioneering role in onshore, shallow and deep water oil exploration and production. Shell has also been at the forefront of gas development, producing and delivering gas to domestic consumers and export markets for over 40 years.
Our core values of honesty, integrity and respect for people form the basis of the Shell General Business Principles.
Our business activities in Nigeria
- The Shell Petroleum Development Company of Nigeria Limited (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 Agip Oil Company Limited (5%). It is focused on onshore and shallow water oil and gas production in the Niger Delta.
- Shell Nigeria Exploration and Production Company (SNEPCO) operates the Bonga field, Nigeria’s first deepwater oil discovery. The Bonga facility has the capacity to produce more than 200,000 barrels per day of oil and 150 MM standard cubic feet of gas per day.
- Shell Nigeria Gas (SNG) is the only international oil and gas company to set up a gas distribution company in Nigeria to supply industry customers.
- Nigeria LNG (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, together with NNPC (49%), Total (15%) and ENI (10.4%).
Shell In Nigeria by numbers
- The SPDC JV’s assets include around 50 producing oil fields, a network of approximately 5,000 kilometers of oil and gas pipelines and flowlines, five gas plants and two major oil export terminals (Bonny and Forcados)
- 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 and has production capacity of 200,000 barrels of oil per day and 150 million standard cubic feet of gas per day
- 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). NLNG accounts for approximately 7% of the world’s total LNG supply
Shell Companies in Nigeria (SCiN) are major contributors to the economy, not only through the energy they produce and the revenues they generate for the country, but also via their supply chains, local content and social investment.
In 2014 Shell-operated ventures in Nigeria produced an average of 739,000 barrels of oil equivalent per day (boe/d), with 578,000 boe/d from the Shell Petroleum Development Company Joint Venture (SPDC JV) and 161,000 from the Shell Nigeria Exploration and Production Company (SNEPCo). Shell Nigeria Gas (SNG) supplies natural gas to 85 industrial customers and the SPDC JV is the major supplier of gas to Nigeria LNG. SPDC’s Afam VI power plant supplied approximately 18% of the nation’s grid-connected electricity in 2014.
Nigeria depends on the oil and gas industry for approximately 90% of export income and 75% of overall government revenue.
SCiN make a major contribution to developing the country’s human capital and contracting capacity. 90% of SCiN contracts were awarded to Nigerian companies in 2014.
SCiN pursue a variety of social investment projects, with a particular focus on community and enterprise development, education and health. Nigeria the largest concentration of social investment spending in the Shell Group.
- In 2014 Shell-operated ventures contributed $202 million (Shell share $93.6 million) to the NDDC as required by law
- $112 million (Shell share $34 million) was directly invested by the SPDC JV and SNEPCo in social investment projects
Collectively, this makes Nigeria the largest concentration of social investment spending in the Shell Group.
Read more about our contributions in Nigeria.
Royal Dutch Shell was formed in 1907, although our history dates back to the early 19th century, to a small shop in London where the Samuel family sold sea shells.
Today, Shell is one of the world’s major energy companies, employing an average of 93,000 people and operating in more than 70 countries. Our headquarters are in The Hague, the Netherlands, and our Chief Executive Officer is Ben van Beurden. The parent company of the Shell group is Royal Dutch Shell plc, which is incorporated in England and Wales.
Our strategy seeks to reinforce our position as a leader in the oil and gas industry, while helping to meet global energy demand in a responsible way. Safety and environmental and social responsibility are at the heart of our activities.
We believe that oil and gas will remain a vital part of the global energy mix for many decades to come. Our role is to ensure that we extract and deliver these energy resources profitably and in environmentally and socially responsible ways.
We aim to work closely with our customers, our partners and policymakers to advance a more efficient and sustainable use of energy and natural resources.
Our people work together on some of the most innovative and exciting energy projects in the world. A diverse workforce and an inclusive work environment are vital to our success, leading to greater innovation and better solutions.
Professional training, development programmes and ongoing support mean that our people are given every opportunity to reach their potential. And our leadership programmes enable talented individuals to become the energy industry leaders of tomorrow.
Shell at a glance in 2015
70+ countries we operate in
93,000 employees on average
22.6 million tonnes of equity LNG sold during the year
23 refineries we have interests in
3.0 million barrels of oil equivalent we produce every day
Financial performance in 2015
Revenue: $265.0 billion
Income: $2.2 billion
Capital investment: $28.9 billion
Investment in research and development: $1.1 billion
Fast facts for sustainable development in 2015
$122 million spent on voluntary social investment worldwide. Of this:
- around $93 million spent on local programmes for community development, disaster relief, education, health and biodiversity; and
- around $29 million spent on our three global strategic themes of enterprise development, road safety and energy access.
In lower-income countries, 75% of spending by Shell companies went to purchase goods and services from local companies.