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Shell companies in Nigeria are involved in the production of oil and gas onshore in the Niger Delta. They also produce oil and gas offshore in the Gulf of Guinea and operate Nigeria’s first ever deep-water project.
Some of the energy from Shell-operated ventures in Nigeria is used nationally to produce electricity and supply industrial users and businesses. The rest is exported to international consumers in the USA, Europe, and Asia.
Economic impact
The joint venture operated by the Shell Petroleum Development Company has contributed about $38 billion to the government in the past five years (2007-2011) including tax and royalty payments. The federal government receives about 95% of the profit from SPDC onshore production in the delta. These companies directly employ around 6,000 staff and contractors – about 90% of them are Nigerian. Their operations also have an important impact on the wider economy, employing approximately 35,000 indirect third party contractor staff.
Watch the video: Shell companies in Nigeria: supporting skills and jobs
The Chief Executive of a major Nigerian engineering company describes how working with the Shell Petroleum Development Company is supporting jobs, skills and safety in his company.
Shell interests in Nigeria
Shell companies in Nigeria are:
The Shell Petroleum Development Company of Nigeria Ltd (SPDC)
This is a wholly-owned Shell company that operates oil and gas production in the Niger Delta on behalf of the partners of an unincorporated joint venture between the government-owned Nigerian National Petroleum Corporation – NNPC (55%), Shell (30%), Elf Petroleum Nigeria Ltd – a subsidiary of Total (10%) – and Agip (5%).
The Shell Nigeria Exploration and Production Company Ltd (SNEPCo)
This is a wholly-owned Shell company set up in 1993 to develop Nigeria's energy resources offshore. The company produces oil and gas in water depths over 1,000 metres and has made some significant discoveries, including Bonga – Nigeria's first major deep water project.
The Shell Nigeria Gas Ltd (SNG)
This is a wholly-owned Shell company set up in 1998 to help promote gas as a cheaper, more reliable and cleaner alternative source of energy for the Nigerian domestic market than liquid fuel. It operates a gas transmission and distribution pipeline network of approximately 110 km (68 miles).
The Nigeria Liquefied Natural Gas Company (NLNG)
This was set up in 1989 to harness Nigeria's vast natural gas resources. It runs one of the world’s largest LNG plants. Shell holds a 25.6% interest in NLNG, together with NNPC, Total LNG Nigeria Ltd and Eni.
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