Shell Awarded U.S. $1.5 Billion Contract to Local Contractors in 2013 - MD

AllAfrica |

The Shell Petroleum Development Company of Nigeria Limited (SPDC), last week said it has continued to contribute to the nation's economic development in several ways, including giving a boost to the government's revenue and acting as catalyst to many domestic operators.

Playing host to media men during an interactive session with newsmen in Lagos, SPDC's Managing Director, Mutiu Sunmonu, said in the area of domestic gas utilisation, for example, he said Shell accounted for 15 percent of national consumption. Shell Nigeria, he continued, supplied gas to over 70 customers in industrial centres in Rivers, Ogun and Abia States. Beyond this, he said SPDC supplied gas the Nigerian Liquefied Natural Gas (NLNG) plant from various fields. On the direct economic impact of these to the nation, Sumonu said Shell awarded contracts valued at $1.5 billion to Nigerian contractors, representing 91 per cent of total contracts for the 2013 financial year.

He said Shell contributed over $44 billion in revenue to the Federal treasury between 2009 and 2013, adding that government received 95 percent of the revenue including income from its major shareholder via the state owned energy firm the Nigerian National Petroleum Company (NNPC).

He said Shell Nigeria Exploration Company SEPCO that operates in deep water contributed additional $26 billion revenue to government within the period under review.

Also speaking on crude oil production, the Shell boss said the company produced an average of 693,0000 barrels of oil daily. A breakdown by him revealed that SPDC accounted for 535,000 barrels of the output, while SNEPCO produced the balance of 158,000 barrels.

He raised alarm over the daily activities of oil thieves in Ogoniland, located in Gokana Local Government Area of Rivers State, adding that apart from increased cases of oil theft in the area, there have also been rising cases of illegal crude refining which impacted negatively on the environment.

On the impact of oil production in Ogoniland, he said, "crude oil theft occurs daily in Ogoniland which has affected the stream of income in the country."

He said despite the rise in the activities of pipeline vandals in the area, Shell has also embarked on educating the people, especially the youth population on the negative impact of crude theft to the economy.

On the clean-up of the areas impacted with spillage, he said government agencies would drive the process, and not Shell, while "Shell will only support. It will not be wise of us to take on the role of government.

"Crude oil theft, sabotage and illegal refining were the main sources of pollution in the Niger Delta today. In 2013, the Nigerian government estimated crude oil theft and associated deferred production at over 300,000 barrels of oil per day. Intentional third-party interference with pipelines and other infrastructure was responsible for around 75 per cent of all oil spill incidents and 92 per cent of all oil volume spilled from facilities operated by the SPDC over the last five years (2009-2013), it explained," he added.

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