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Shell Pays $4.9bn To FG

Shell Pays $4.9bn To FG

 

Oil major Shell Plc, remitted a total of $67 billion to countries of its operation last year.

The figure shows Nigeria received the highest amount at $4.9 billion, according to the British energy giant.

“We paid $14 billion in corporate income taxes and $6 billion in government royalties, and collected $47 billion in excise duties, sales taxes and similar levies on our fuel and other products on behalf of governments”, the integrated company said in a statement.

According to the statement, the total, paid to 26 countries where Shell has upstream operations, was down from the $86.1 billion in government payments it had reported for 2022.

United Kingdom companies are required by domestic law to report payments to governments under the Reports on Payments to Governments Regulations 2014, amended 2015.

Shell earlier reported $30.6 billion in adjusted earnings before income tax, depreciation and amortization from its upstream activities in 2023, down from $42.1 billion the prior year.

Production volumes available for sale fell to 1.8 million barrels of oil equivalent per day (MMboepd) from 1.9 MMboepd.

Despite their treasuries levying no oil and gas royalties, Oman ($4.1 billion) and Norway ($3.8 billion) round up the top three recipients for 2023, with Shell’s payments to the two nations consisting of taxes and fees.

The UK government received $455.2 million from London-based Shell 2023, consisting of taxes and fees; the country stopped imposing royalties 2002.

The bulk of Shell’s payments to Nigeria consisted of royalties at $727.9 million. However, it was the United States that was the biggest recipient of Shell royalties last year at $1.2 billion.

Shell last year pledged $6 billion in investment in Nigeria the bulk of which is for the expansion of the Bonga oil field project.

“We are very focused on resolving all investment-related issues. There is no bottleneck that is too difficult for us to remove in our determined march toward making Nigeria the African haven for large-scale investment in all key sectors”, Tinubu told the delegation, according to the official report of the meeting on the presidential website. “We need each other”.

Zoe Yujnovich, Shell director for global integrated gas and upstream, told the other side the company is refocusing resources into the deepwater and gas sectors.

“She outlined the company’s dedication to the development of the gas value chain in the country, including a substantial commitment of $1 billion over the next five to ten years, aimed at unlocking gas resources for domestic use and the Nigeria Liquefied Natural Gas project”, stated the official press release.

“Furthermore, Ms. Yujnovich announced an imminent $5 billion investment opportunity in the Bonga North project off the shores of Nigeria, located in the deep water”.

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Published: 26-03-2024

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