Payments to governments

Managing oil and gas revenues

Our operations generate revenue through taxes and royalties for governments around the world. In 2011, Shell paid globally $22.6 billion in corporate taxes, and $4.4 billion in royalties. We collected $88.1 billion in excise duties and sales taxes on our fuel and other products on behalf of governments.

We encourage and support government efforts to use revenues from energy production effectively. In developing countries, oil and natural gas revenues can bring widespread benefits, for example by funding schools and hospitals. But if the money is poorly managed it can stimulate corruption, social inequality and conflict. Governments have responsibility for using these funds for social benefits. We believe major companies like ours should be open on how much we pay to governments, and that governments should be transparent in how they use these funds.

A step towards more transparency

For the first time, Shell is now publishing details of the payments we make to governments of some of the main countries where we operate.  

We are taking this step to reinforce efforts to increase transparency in revenues paid to and collected on behalf of governments, in advance of any mandatory requirements coming into effect.

To help improve accountability, we support a mandatory global reporting rule for extractive industries in line with current EITI requirements, and in support of the EITI goals. We are engaging actively with other parties to find a workable global standard in relation to US and EU regulations currently being considered.

Extractive Industries Transparency Initiative

We are a founder and board member of the Extractive Industries Transparency Initiative (EITI). The UK government launched this global initiative in 2002 to increase transparency in revenues that governments receive from oil and mineral activities. The EITI’s approach includes countries, civil society and companies. We believe it remains the most effective way of providing transparency in government revenues for countries that depend on energy resources for income.

Governments, agencies and companies in the oil, gas and minerals businesses support the initiative. In 2003 we were the first company to publish the royalties, taxes and other payments made to the Nigerian government, with their permission and support. We continue to work with governments, industry peers and non-governmental organisations to implement the EITI in Gabon, Iraq, Kazakhstan, Nigeria and Norway.