Shell interests in the Nigerian Oil & Gas sector
|Name of Company||Description and main activities||Operating assets|
|The Shell Petroleum Development Company of Nigeria Limited (SPDC).||Supplies onshore and shallow water oil and gas to domestic and export market; operator and 30% participant interest holder in the SPDC Joint Venture.||Oil and gas wells, gas plants, export terminals, pipelines, flowlines and a power plant.|
|Shell Nigeria Exploration and Production Company Limited (SNEPCo.)||Produces deep water oil and gas; operator and 55% contractor equity interest holder of Bonga Field.||Floating production, storage and offloading (FPSO) vessel.|
|Nigeria Liquefied Natural Gas Company Limited (NLNG).||Processes and exports liquefied natural gas (LNG); 25.6% shareholder in NLNG joint venture.||Liquefied Natural Gas (LNG) facility.|
|Shell Nigeria Gas Limited (SNG).||Sole Nigerian subsidiary of an international oil company in domestic gas distribution; 100% Shell share.||Pressure reduction and metering station and a gas transmission and distribution network.|
PAST, PRESENT AND FUTURE: SHELL COMPANIES IN NIGERIA
- Marked 60-year history in Nigeria in 2018.
- Played a pioneering role in onshore, shallow and deep-water oil exploration and production.
- Produced and delivered natural gas to domestic consumers and the export market for nearly 55 years for the benefit of the nation.
- Work in partnership with the Federal Government of Nigeria (FGN), local and international companies, investors, contractors and communities to develop the country’s oil and gas sector.
- Continue to strengthen Shell’s long-term position in the country by optimising their onshore oil footprint while making investments in other areas, particularly deep water and the gas value chain, including domestic gas.
THE SHELL PETROLEUM DEVELOPMENT COMPANY OF NIGERIA LIMITED (SPDC)
- Focuses on onshore and shallow water oil and gas exploration, production and supply in the Niger Delta.
- Largest Shell company in Nigeria and produced the country’s first commercial oil exports in 1958 from Oloibiri, Bayelsa State.
- 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%).
The SPDC JV’s assets include:
- Around 1,200 operated oil and gas 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).
- One power plant (Afam VI).
SHELL NIGERIA EXPLORATION AND PRODUCTION COMPANY LIMITED (SNEPCo)
- Holds interests in four deep-water blocks, three of which are under the terms contained in a Production Sharing Contract.
- Operates OML-118 (including the Bonga field, 55% interest) and OML-135 (Bolia and Doro, 55% interest) and holds 43.75% interest in OML-133 (Erha) operated by the ExxonMobil subsidiary Esso Exploration and Production Nigeria (Deepwater) Limited.
- Separately, holds 50% interest in OPL-2451 (Zabazaba, Etan), which is operated by the ENI subsidiary Nigerian Agip Exploration Limited, under a Production Sharing Agreement.
FACTS ON BONGA
- Nigeria’s first oil and gas project in water depths over 1,000 metres.
- Increased Nigeria’s oil production capacity by 10% when it began producing in 2005.
- Floating production, storage and offloading (FPSO) vessel has a total production capacity of 225,000 barrels of oil per day and 170 million standard cubic feet of gas per day.
- Helped create the first generation of Nigerian oil and gas engineers with deep water experience and stimulated the growth of support industries.
NIGERIA LIQUEFIED NATURAL GAS COMPANY LIMITED (NLNG)
- A joint venture that developed Nigeria’s first LNG and natural gas liquids project for export.
- Shell holds a 25.6% share, with partners NNPC (49%), a subsidiary of Total E&P (15%) and an ENI subsidiary (10.4%).
- 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.
- Plans for building a seventh train (Train 7) that will increase the total production capacity to 30 million tonnes of LNG are currently in the front-end engineering development stage.
- A ccounts for approximately 7% of the world’s total LNG production capacity in 2018.
- LNG cargoes shipped to Atlantic Basin countries, such as Spain, Italy, Turkey, Mexico and US, and markets in Asia.
SHELL NIGERIA GAS LIMITED (SNG)
- Promotes gas as a more reliable, cleaner and cost-effective alternative to liquid fuels for the Nigerian domestic market.
- The first and only wholly-owned subsidiary of an international oil company involved in domestic gas distribution in Nigeria.
- Operates a pressure reduction and metering station, and a gas transmission and distribution network of approximately 140 kilometers that distribute natural gas to about 100 industrial and commercial customers, majority of which are in Ogun, Abia, and Rivers States of Nigeria.
- 100% Nigerian employees and only gas distribution company in Nigeria whose facility is ISO 14001 Certified.
1 — The authorities in various countries are investigating allegations of bribery, money laundering and corruption over Shell’s investment in Nigerian oil block OPL 245 and the associated 2011 settlement of litigation pertaining to that block. More information is available in Note 25 (Legal Proceedings and Other Contingencies) of the Shell Annual Report 2018 at the following link: https://reports.shell.com/annual-report/2018/consolidated-financial-statements/notes/25-legal-proceedings.php.
More In Briefing Notes
Shell Companies in Nigeria are major contributors to the country’s economy and people.
Natural gas is the cleanest burning fossil fuel and is abundantly available in Nigeria, which has the largest reserves in Africa and the ninth largest in the world.