Shell paid $1.2bn royalties to Nigerian government in 2024

Shell Companies in Nigeria (SCiN) has made a combined payment of $1.2 billion in royalties to the Nigerian government in 2024, a senior business economist at the company revealed.

Chidi Nkazi, who is also a Business Value Manager, made this known in Abuja as the oil multinational commenced its participation at the 24th Nigeria Oil and Gas (NOG) Conference and Exhibition.

He stated that Shell Nigeria Exploration and Production Company Limited (SNEPCo) and Shell Nigeria Gas (SNG) collectively paid $1.208 billion in combined royalties to the Nigerian government last year.

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According to him, Shell is also investing in Nigeria’s future with the Final Investment Decision on the $5 billion Bonga North deep-water project. Snepco is increasing its interest in the Oil Mining Lease (OML) 118, which includes the Bonga field, from 55 percent to 67.5 percent, through the acquisition of the 12.5 percent stake of TotalEnergies.

OML 118, located about 120 kilometres off the coast of the Niger Delta, is a prolific deep offshore block that hosts the Bonga and Bonga North oil fields. Production from the field commenced in 2005 and remains one of Nigeria’s most significant offshore oil assets.

Following the acquisition, SNEPCo’s stake in the OML 118 PSC rises to 67.5 percent, consolidating its position as the lead operator of the asset. The remaining interests are held by Esso Exploration and Production Nigeria Ltd (20 percent) and Nigerian Agip Exploration Ltd (12.5 percent).

In 2024, the OML 118 block yielded approximately 11,000 barrels of oil equivalent per day (boe/d) attributable to TotalEnergies’ share, production that will now flow to Shell’s portfolio once the deal is finalised.

SCiN cover SNEPCo, SNG, All On and Daystar Power. These companies have achieved milestones in deep-water production, supplying gas to industries, and providing off-grid energy and renewable solutions.

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SNG serves more than 140 industrial and commercial customers in Ogun, Abia, and Rivers states. Meanwhile, All On now has a total portfolio of 51 renewable energy companies, which have delivered over 210,000 energy connections across the country. Daystar Power is offering integrated solar solutions to businesses in five African countries, including Nigeria.

Chidi added: “A robust social investment portfolio by SCiN has also led to the implementation of programmes in education, health, employment generation, as well as infrastructural development across communities in Nigeria.”