FINANCIAL 

  • Shell Companies in Nigeria spent $800 million on contracts to Nigerian-registered companies which is same level as the 2020 spend.
  • $986 million in corporate taxes and royalties paid to the Federal Government of Nigeria (SPDC $424 million and SNEPCo $562 million), compared with $900 million in 2020. 
  • The SPDC JV, SNEPCo and SNG spent $33.82 million in direct social investment, compared with $49.4 million in 2020. The decline is largely because in 2020, significant contributions were made to COVID-19-specific programmes supporting communities impacted by the onset of the pandemic.
  • The SPDC JV, in compliance with statutory requirements, paid $38.7 million in 2021 to the Niger Delta Development Commission (NDDC). SNEPCo and its co-ventures paid $23 million to the NDDC.
  • Combined production from SPDC and SNEPCo (Bonga) declined to 498,000 barrels of oil equivalent, compared with 621,000 barrels of oil equivalent in 2020. The decline was largely a result of divestment action and activity curtailment due to heightened security issues in the Niger Delta.
  • Shell Companies in Nigeria directly employed 2,500 people (of whom 97% were Nigerian nationals) with more than 8,500 contractors supporting operations.

BUSINESS DEVELOPMENTS

  • Shell Energy Nigeria was established to focus on gas, power, renewables and energy solutions for industrial and commercial customers. 
  • SNG, the domestic gas distribution entity of the Shell Energy Nigeria business line, continues to expand and has signed agreements to deliver gas to around 165 corporate customers. 
  • SNG provides gas to more than 130 commercial and industrial customers, at the time of writing. Infrastructure is being built to enable the delivery of gas to new customers. 
  • SNEPCo, its OML 118 partners and the Nigerian National Petroleum Corporation (NNPC) extended the OML 118 production-sharing contract (PSC) licence for another 20 years, further incentivising development of the OML 118 block and opening opportunities in Nigeria’s deep waters.
  • NLNG Train 7 early works, including engineering, procurement and construction activities, have ramped up. 
  • SPDC completed the sale of its 30% interest in OML 17 for $533 million. 
  • Shell has announced its intention to reduce its involvement in onshore oil and gas production in Nigeria but will continue to develop its deep-water oil and gas production and its gas supply businesses for domestic use and export.

SOCIAL INVESTMENT

  • The All On impact investment company increased the size of its total portfolio of renewable, energy access investee companies by from 31 to more than 40, and the All On Hub increased its supported businesses from 41 to 81 ventures. 
  • All On, together with Odyssey Energy Solutions and the Global Alliance for People and Planet, launched the Demand Aggregation for Renewable Technology (DART) program to bring affordable, high quality solar products to communities most in need. 
  • Community Health Insurance Scheme added 8,180 people. More than 85,000 people have been enrolled across the Niger Delta since launch in 2010. The scheme is a partnership between the SPDC JV, Rivers State Government and local communities. 
  • Health-in-Motion mobile community health outreach programme added 2,451 people. More than one million people across the Niger Delta have benefited since 2010. 
  • The SPDC JV renewed five Global Memorandum of Understanding (GMoU) agreements to provide secure funding for community-led development programmes and deployed one new agreement. Over $98.6 million was disbursed over the last five years. 
  • The SPDC JV and SNEPCo invested $6.2 million in education programmes. More than 2,500 secondary school grants, over 3,200 university grants and 900 Cradle-to-Career scholarship grants have been made since 2016. 
  • The SPDC JV has delivered the first phase of a $5 million infrastructure project to the Nigeria Maritime University (NMU), Okerenkoko, Warri, Delta State. 
  • The global Shell LiveWIRE entrepreneurship programme helped 190 Nigerians through training and grants.

SPILLS AND CLEAN-UP

  • SPDC JV operational spills: nine1 incidents of more than 100 kilograms of crude oil compared with 12 incidents in 2020. The total volume of 29 tonnes of spilled crude was slightly less than the 30 tonnes reported in 2020. 
  • Spills from illegal activities: 1062 incidents with volume of 3.3 thousand tonnes, compared with 122 incidents in 2020, with volume of 1.5 thousand tonnes. The doubling of the volume was mainly attributable to one incident, caused by sabotage, which accounted for 2.3 thousand tonnes of crude oil. This was contained and around 90% recovered and returned to the system. 
  • Ogoniland: Clean-up led by the government agency, Hydrocarbon Pollution and Remediation Project (HYPREP). In 2021, remediation was completed and certified on nine sites; work continues on 11 sites.
  • Bodo: By the end of 2021, remediation was completed on 60% of the clean-up area with around 300,000 mangrove seedlings planted so far out of the required 2 million seedlings that are planned by the end of 2025.

1We have updated the number of operational spills from 10 (as reported in the Annual Report) to nine following a review of data, which indicates that a spill previously thought to be operational, was instead residual impact from a previous incident.

2We have updated the number of sabotage spills from 107 (as reported in the Annual Report) to 106 following a review of data to exclude a spill from OML 17, as the spill occurred after the divestment.