Oil Exploration: Shell pledges greater corporate transparency - NaijaAgroNet

NaijaAgroNet:

The Shell Petroleum Development Company of Nigeria Limited (SPDC) and Shell Nigeria Exploration and Production Company Limited (SNEPCo), has pledged to be transparency in its exploration in the country, reports NaijaAgroNet.

This pledge is coming with the payment of over $6.397 billion to the Nigerian government and its agencies in 2018 by Shell exploration and production companies in Nigeria.

The payment, NaijaAgroNet gathered, represents a 48 per cent increase over payments by the companies to Nigerian government in 2017 which was $4.322 billion.

The payments formed part of the four documents released on Tuesday by the Group Chief Executive Officer of the Royal Dutch Shell, Ben Van Beurden, to signal the global oil giant’s renewed commitment to greater transparency. The documents are: Shell Sustainability Report; Industry Associations Climate Review; Nigeria Briefing Notes; and Payments to Government Report.

“Shell must remain at the forefront of the drive for greater corporate transparency. We will continue to be more open about what we do and why we do it,” said van Beurden. “We want to help people better understand Shell’s performance, values and principles. These reports outline our approach and activities in the crucial areas of sustainability and our relationships with industry associations and governments.”

In the breakdown of the 2018 payments, the Shell companies paid $3.776 billion to the Nigeria National Petroleum Corporation as production entitlement while $1.286 billion was paid in taxes to the Federal Inland Revenue Service. Another $1.253 went to the Department of Petroleum Resources for royalties and fees, while $81.5 million was remitted to the Niger Delta Development Commission.

Managing Director of SPDC and Country Chair, Shell Companies in Nigeria, Osagie Okunbor, described the reports as a further testament to Shell’s efforts to increase transparency around activities that are important to investors, governments and civil society. “We are irrevocably committed to transparency just as we are to business integrity part of our core values and central tenets of the Business Principles that govern the way we do business.”

The Shell Nigeria Briefing Notes detail the activities of the Shell Companies in Nigeria for 2018. These include production, environmental performance, social investment, economic contributions, gas initiatives, deepwater operations, security and Nigerian content development.

The Industry Associations Climate Review assesses for the first time Shell’s alignment with 19 key industry associations on climate-related policy. The report also details new governance principles to improve how Shell manages its memberships of industry associations on climate-related topics.

The 22nd edition of the Shell Sustainability Report outlines Shell’s approach to sustainability and covers its social, safety and environmental performance in 2018. It sets out how Shell is playing a role in the transition to a lower-carbon world and its contribution to society, which includes helping to achieve universal access to cleaner, affordable energy.

In addition, Shell published its 2018 Payments to Governments Report covering 34 countries where it has extractive activities.

Isaac Oyimah/Editor

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