NIGERIA BRIEFING NOTES 2021

shellnigeria.com COUNTRY CHAIR’S INTRODUCTION Spill prevention Spill

WELCOME TO THE NIGERIA I am immensely proud of the Shell BRIEFING NOTES IN WHICH Companies in Nigeria. The contribution WE LOOK BACK ON HOW we make to this country is astounding. SHELL COMPANIES IN Not only in terms of the tax revenue we NIGERIA PERFORMED generate for the nation but also in terms Cohesive communities IN 2020. of what we are achieving when it comes to developing gas and increasing access It was a year when COVID-19 ravaged to energy for Nigerians. OSAGIE OKUNBOR the global economy and changed all our Country Chair of Shell Companies in Nigeria. lives. I’m proud of the contribution Shell We create jobs by investing in large Companies in Nigeria were able to make energy projects, by awarding contracts to to better health care, increased testing Nigerian businesses and by employing, capacity and isolation centres but, first, training and empowering Nigerians across

Powering the economy the Powering I would like to thank all the medical and our businesses. We are building talent, government workers who helped Nigeria across all our interests and, especially, in WE CREATE JOBS through this difficult time. The resilience natural gas and deep-water exploration. of my fellow Nigerians continues to We believe our investments will enrich BY INVESTING IN encourage me in the future of our country. many areas of the country for the future. LARGE ENERGY

Shell in NigeriaShell in PROJECTS

2 Shell in Nigeria briefing notes 2021 WE’RE HELPING LOCAL The idea of collaboration lies at the COVID-19 hit Shell Companies in heart of the Shell Companies in Nigeria, Nigeria in the same way as the rest COMPANIES SUCCEED with government; with local business of the world. The fact that we rallied,

Spill prevention Spill partners; with schools, universities and bounced back and produced oil and THROUGH RELIABLE AND hospitals; and with communities. We gas in line with our 5-year average AFFORDABLE POWER know that Nigerians have the power speaks to the resilience and agility to achieve their own prosperity and we of our businesses and our teams. want to help them do that. Our support The fact that we also made a significant for health services, education and contribution to Nigeria’s COVID-19 entrepreneurship shows just how much response speaks of our commitment we value those we work alongside. to this country. Cohesive communities

Our gas businesses are working with We work hard to support communities OSAGIE OKUNBOR the federal government to produce and and they, in turn, engage with us Country Chair of supply energy to Nigerian commercial and help us do better, every year. Shell Companies in Nigeria and industrial hubs. We’re helping local For example, in 2020 we had the Port Harcourt, Nigeria companies succeed through reliable and lowest volume of oil spilled in at affordable power. But it’s not only about least a decade. This was achieved our businesses. We believe in increasing through an effective pipeline and asset

Powering the economy the Powering access to energy for Nigerians and management system, and also through we therefore have provided funding to the hard work that goes into forging All On, a not-for-profit enterprise that positive relationships with surrounding finances renewable energy start-ups communities who then help us. so that they can provide energy to

HEALTHWORKERS AT THE OBIO COTTAGE communities that are off the power grid. HOSPITAL IN PORT HARCOURT, NIGERIA. Shell in NigeriaShell in

3 Shell in Nigeria briefing notes 2021 Shell in Nigeria

Spill prevention Spill SHELL’S INTERESTS IN NIGERIA

GOVERNMENT, NON-GOVERNMENTAL ORGANISATIONS Powering the economy AND COMPANIES HAVE A ROLE IN GIVING NIGERIA’S YOUNG POPULATION THE BEST START. POWERING NIGERIA’S

Cohesive communities ECONOMY

Cohesive communities HELPING BUILD COHESIVE COMMUNITIES Powering the economy the Powering

Spill prevention PREVENTING SPILLS NO SPILL IS ACCEPTABLE. SPDC JV WORKS HARD TO PREVENT THEM. IN THE NIGER DELTA Shell in NigeriaShell in

4 Shell in Nigeria briefing notes 2021 Spill prevention Spill

Cohesive communities SHELL’S Shell has invested in game-changing businesses in Nigeria for over 60 years and today has interests in several companies that produce and distribute oil, INTERESTS gas, liquefied natural gas (LNG) and other energy products.

Powering the economy the Powering IN NIGERIA SHELL IN NIGERIA

WORKERS AT A GAS PLANT IN NIGERIA. Shell in Nigeria in Shell

5 Shell in Nigeria briefing notes 2021 THESE BUSINESSES ARE STRONG FINANCIAL PERFORMERS AND TWO Spill prevention Spill Major oil export terminals SIX CONTRIBUTE TO ECONOMIC Liquefied natural gas (LNG) trains GROWTH IN NIGERIA.

Cohesive communities ONE 150+ Three businesses are wholly owned In addition, Shell Gas B.V. holds a 25.6% Industrial gas by Shell and are known as the Shell shareholding in Nigeria LNG Limited Deep-water floating production, customers Companies in Nigeria (SCiN). They (NLNG), which produces and exports storage and offloading (FPSO) vessel are the Shell Petroleum Development liquefied natural gas to European and Company of Nigeria Limited (SPDC), other markets. which has a 30% share in the SPDC joint venture (SPDC JV) and produces oil and

Powering the economy the Powering gas in the Niger Delta; the Shell Nigeria Exploration and Production Company Limited (SNEPCo), which operates in the

deep waters of the Gulf of Guinea; and The Nigeria Briefing Notes update on activities and programmes undertaken by several Nigerian companies either wholly owned by Shell Shell Nigeria Gas Limited (SNG), which or in which Shell has an interest. Together, three of these are referred to as the Shell Companies in Nigeria (SCiN). provides gas to Nigerian industrial and Shell Petroleum Development Company of Nigeria Limited (SPDC); a wholly-owned Shell subsidiary, which operates an unincorporated joint venture (SPDC JV) in which SPDC holds a 30% interest.

Shell in Nigeria in Shell commercial customers. Two other wholly-owned Shell subsidiaries; Shell Nigeria Exploration and Production Company Limited (SNEPCo) and Shell Nigeria Gas Limited (SNG).

The fourth is Nigeria Liquefied Natural Gas (NLNG) Limited; an incorporated joint venture in which Shell B.V. has a 25.6% interest. 6 Shell in Nigeria briefing notes 2021 SHELL INTERESTS IN THE NIGERIAN OIL & GAS SECTOR

NAME OF COMPANY DESCRIPTION AND OPERATING ASSETS MAIN ACTIVITIES Spill prevention Spill

HEARTLAND The Shell Petroleum Supplies onshore and shallow SPDC JV: Operator and 30% participant interest ■ 8 gas plants Development Company of water oil and gas to domestic holder in SPDC joint venture: ■ Two major oil export terminals. Nigeria Limited (SPDC) and export market ■ 360 producing oil wells (101 land, 195 west and ■ One power plant 64 central assets). ■ 60 producing gas wells (11 land, 4 west and 45 central assets). ■ A network of 4,000 kilometres of oil and gas pipelines and flowlines.

■ Cohesive communities DEEP-WATER Shell Nigeria Exploration Produces deep-water SNEPCo: Operator of the Bonga field floating production, Interests in two non-operated deep-water blocks: and Production Company oil and gas storage and offloading vessel (FPSO). Interests in two Shell- ■ Zabazaba, Etan (OPL-245 – 50% interest) operated Limited (SNEPCo) operated deep-water blocks under production sharing contracts: by Agip under a production sharing agreement. ■ Bonga (OML-118 – 55% interest) and Bolia/Doro ■ Ehra (OML-133 – 43.75% interest) operated (OML-135 – 55% interest). by Esso under a production sharing contract.

GAS FOR Shell Nigeria Gas Limited Only Nigerian subsidiary Operator and 100% Shell share: ■ Serving over 120 industrial and commercial customers, NIGERIA (SNG) of an international oil company ■ Two LNG trains with processing capacity of over 150 mmscfd. mostly in Ogun, Abia, and Rivers states. in domestic gas distribution ■ ■ Pressure reduction and metering station. Signed commercial agreements with over 150 companies in Ogun, Abia, Rivers and Bayelsa States. ■ Gas transmission and distribution network of approximately Powering the economy the Powering 150 kilometres. ■ Over 99% of SNG Customer payments are made on time.

GAS FOR Nigeria LNG Limited (NLNG) Processes and exports liquefied Nigeria LNG Limited (NLNG) processes and exports liquefied ■ Six LNG trains with total processing capacity of 24.1 million EXPORT natural gas (LNG) natural gas (LNG). Shell’s B.V.’s shareholding in the NLNG Joint tonnes a year of LNG and up to 5 million tonnes of natural Venture is 25.6%: gas liquids (LPG and condensate) from circa 3.5 billion standard cubic feet per day of natural gas. ■ NLNG is serviced by fleet of 23 LNG vessels. Shell in Nigeria in Shell

7 Shell in Nigeria briefing notes 2021 STRONG PERFORMANCE 620,000 barrels of oil equivalent per day, Performance matches 5-year remained close to the 5-year average average despite COVID-19 of 625,000. Spill prevention Spill Nigeria’s natural resources offer Shell is enhancing its portfolio of assets attractive investment opportunities through selective investments in large and significant potential to help raise gas projects, exploration in the Gulf living standards for its population. of Guinea and rejuvenation of the SPDC JV’s onshore oil and gas production Shell Companies in Nigeria (SCiN) in the Niger Delta by reopening wells. have a track record of strong SCiN operate to global Shell standards

Cohesive communities production and financial performance. and have a strong focus on maintaining A TEAM OF WORKERS AT SHELL NIGERIA GAS FACILITY AT AGBARA, OGUN STATE, NIGERIA. 2019 was a record year and 2020 assets to high standards. remained strong despite the global health pandemic. This outcome is The SPDC JV and SNEPCo production thanks to a deeply embedded culture of oil and gas has increased over the of performance and empowering past five years and Shell Nigeria Gas leaders to make faster decisions (SNG) added another 30 industrial and 620,000 and find fit-for-purpose solutions. commercial customers to its books. Shell

Powering the economy the Powering Gas B.V. and its partners took the decision barrels of oil equivalent per day in 2020 Production in Nigeria was hit by the to expand NLNG’s liquefied natural gas pandemic and OPEC quota reductions (LNG) export operations in Nigeria at imposed in response to the global the end of 2019. economic slowdown. Output from the SPDC JV and SNEPCo in 2020 fell from

Shell in Nigeria in Shell the record highs of 2019 but, at around

8 Shell in Nigeria briefing notes 2021 SCiN are working with the federal At the same time, SCiN continue to government of Nigeria to build a maintain leadership in developing network of gas plants and pipelines opportunities in the deep waters

Spill prevention Spill to help bring power to the country’s of the Gulf of Guinea. And in 2020, growing industrial and commercial a range of Shell-branded lubricants sectors. This infrastructure will also was reintroduced to Nigerian customers increase the export of liquefied natural through a strategic partnership. gas (LNG) to meet global demand for power plants and heating. Natural gas emits between 45% and 55% fewer greenhouse gas emissions and less than

Cohesive communities one-tenth of the air pollutants than coal when used to generate electricity*.

ONE OF SEVERAL GIANT GAS TANKS AT NIGERIA LNG LIMITED (NLNG) EXPORT TERMINAL.

2016 2017 2018 2019 2020 Powering the economy the Powering SPDC JV ACTUALS 368,000 464,000 465,000 514,000 503,000 (BOEPD)

SNEPCO (BONGA 203,000 167,000 158,000 164,000 118,000 OIL) (BOPD) * https://www.shell.com/media/news-and-media-releases/2021/2020-lng-demand- holds-steady-despite-covid-19-set-for-growth-as-global-economies-recover.html Shell in Nigeria in Shell

9 Shell in Nigeria briefing notes 2021 SNG FORCADOS GAS FACILITY EXPORT TERMINAL

TUNU PROCESSING FACILITY Spill prevention Spill

NIGERIA LNG EXPORT TERMINAL BONNY EXPORT Cohesive communities TERMINAL

GLOBAL MARKETS NIGERIA

EXPORT OIL EXPORT GAS DOMESTIC GAS

REJUVINATING HEARTLAND EXPANDING NATURAL GAS Powering the economy the Powering 8.3% 27% 360mt ∼150

Shell in Nigeria in Shell SPDC JV 2020 daily production SNEPCO 2020 daily production LNG global demand SNG customers vs. 5-year average vs. 5-year average

10 Shell in Nigeria briefing notes 2021 SPOTLIGHT

AGILE RESPONSE SCiN’s production in Nigeria was hit by TO COVID-19 the pandemic and OPEC quota reductions imposed in response to the global

Spill prevention Spill In 2020, the COVID-19 pandemic sent economic slowdown. Output from SPDC shockwaves around the world, triggering and SNEPCo in 2020 fell from the record lockdowns as governments scrambled highs of 2019, but at around 620,000 to protect their citizens. The federal barrels of oil equivalent per day remained government of Nigeria ordered businesses close to the 5-year average of 625,000. to close to prevent the spread of the virus. DONATION OF MEDICAL EQUIPMENT TO THE MINISTRY OF HEALTH, RIVERS STATE, NIGERIA. SCiN’s nimble response ensured we adjusted quickly to the new way of things,

Cohesive communities Shell Companies in Nigeria (SCiN) Testing and new operating procedures bouncing back when lockdowns were responded with agility to the COVID-19 were put in place and activities were lifted to continue operating safely and pandemic. SCiN quickly closed their opened after just several weeks. However, effectively. The actions demonstrated offices and reduced staff on non-critical oil and gas production, construction operational and financial resilience and, operations including project sites to projects and spill site remediation despite the pandemic, SCiN continued protect staff and contractors until safety activities were all impacted. building for the future. could be ensured. This helped prevent widespread infection. SCiN also contributed significant resources

Powering the economy the Powering and expertise to help the communities where we operate help fight the spread of DESPITE COVID-19, WE ACHIEVED the coronavirus. STRONG PRODUCTION LEVELS

Shell in Nigeria in Shell AND OUR SAFETY PERFORMANCE

11 Shell in Nigeria briefing notes 2021 CONTINUES TO IMPROVE INTERVIEW

RISING TO THE Impact Hopes CHALLENGE OF COVID-19 We have made sure of business continuity The pandemic motivated us. We improved throughout the pandemic and we intend competences when people stayed longer

Spill prevention Spill to continue doing this with the aim that with a project and learned more. The We speak to everybody is safe. Despite COVID-19, we bonding between colleagues is great. achieved strong production levels and our This is the new normal and it’s positive Meshach Maichibi, safety performance continues to improve. because we are thinking smarter and SPDC asset manager reducing costs. Approach We have created “bubbles” and people Challenges have to test negative for COVID-19 before Bringing everyone home is always

Cohesive communities they can go into a bubble. We have going to be my priority. We aim for reduced staffing to the few crucial people zero safety incidents. who are needed on site. You can only effectively implement change where you have controls in place. We have what we call our bible – a set of COVID-19 controls that tell us what mitigation we need to take and when.

Powering the economy the Powering WE RISE TO THE CHALLENGE Shell in Nigeria in Shell MESHACH MAICHIBI SPDC Asset Manager 12 Shell in Nigeria briefing notes 2021 GROWING THE Shell Gas B.V. and its partners took The Shell LNG Outlook finds that global GAS PORTFOLIO a final investment decision at the end demand for LNG increased to 360 Click on this link to read about of 2019 on a new liquefied natural gas million tonnes in 2020. As the world our work with LNG

Spill prevention Spill Shell is investing in a gas portfolio (LNG) processing unit at NLNG. The looks increasingly to lower-carbon fuels, that will increase supply for Nigerian expansion is expected to create around it is expected that demand for LNG will https://www.shell.com/energy-and- and international customers via an 12,000 jobs during construction and continue to grow. Global LNG prices innovation/natural-gas/liquefied- expanding network of plants, pipelines stimulate growth of the local oil and gas hit a record low early in 2020 but ended natural-gas-lng/lng-outlook-2021 and export terminals developed with services sector. Construction is expected to the 12-month period at a six-year high joint venture partners, the Nigerian take a number of years. Once operational, as demand in parts of Asia recovered government and communities. the new unit, known as “Train 7”, will add and winter buying increased against around 8 million tonnes per annum of tightened supply. SNG markets gas within Nigeria

Cohesive communities Shell has interests in two gas supply capacity to the Bonny Island LNG facility, as a more reliable and affordable operations in Nigeria: taking the total to around 30 million tonnes Considerable opportunities lie in alternative to liquid fuels. Its gas is used per annum. supplying Nigeria with gas. Nigeria has by local manufacturers to make household ■ Nigeria LNG Limited a population of more than 200 million consumables, beverages, utensils and (NLNG, Shell interest 25.6%), and NLNG accounts for about 7% of the and this is expected to double by 2050, hardware. Its customers include Africa’s ■ the Shell Nigeria Gas Limited world’s total LNG production. Gas from so there is enormous potential within the largest plate glass factory and a number (SNG, Shell interest 100%). the SPDC JV and SNEPCo’s Bonga deep- domestic gas market. SNG is the only of household names. SNG is the only gas water field is piped to the NLNG plant wholly owned gas distribution subsidiary distribution company in Nigeria certified Both are supplied with gas by the Shell Powering the economy the Powering on Bonny Island. Here it is cooled to of an international oil company in Nigeria. according to the ISO14001 international Petroleum Development Company of produce LNG for export to consumers It is the fastest growing domestic gas standard for an effective environmental Nigeria joint venture (SPDC JV) and in Atlantic Basin countries, such as Spain, distribution company in Nigeria and is at management system. the Shell Nigeria Exploration and Italy, Turkey, Mexico and the US, as well the forefront of providing domestic gas to Production Company Limited (SNEPCo). as markets in Asia. industrial customers and manufacturing plants in five Nigerian states. Shell in Nigeria in Shell

13 Shell in Nigeria briefing notes 2021 INTERVIEW

ABIMBOLA TIJANI Project Manager

DOMESTIC GAS PROJECTS Impact BRING BENEFITS TO This impressive gas development NIGERIANS is designed to increase Nigeria’s NIGERIA’S

Spill prevention Spill availability of gas, boosting industrialisation and positively CREATIVITY We speak to impacting our economy, especially manufacturing and agriculture. The Abimbola Tijani, detailed engineering design was WILL BE FURTHER project manager for executed locally with international support. We are happy that we have UNLEASHED the Assa North-Ohaji delivered a world class design. Cohesive communities South gas project. Approach Hopes Challenges Our team is relatively young and It is my belief that through the delivery The business environment in Nigeria highly talented. We work hard and we of more gas and more power, Nigeria’s is fraught with challenges, one of which are committed to constantly learning creativity will be further unleashed. is financing. We work closely with our from all around us. We actively go in New businesses will spring up and contractors as they seek resources to search of lessons from other projects. inactive ones will be revived, leading deliver on their scope. We also work If a process worked well for another to significant improvements in our living with our various stakeholders to manage

Powering the economy the Powering project, we seek to replicate, adapt standards. The gas from this project the non-technical risks that affect a project and adopt. represents opportunity, new dreams of this magnitude. and a brighter future. Shell in Nigeria in Shell

14 Shell in Nigeria briefing notes 2021 15 Shell in Nigeria Powering the economy Cohesive communities Spill prevention Shell in Nigeria briefing notes 2021 notes briefing Nigeria in Shell customers. international and domestic to redirected source energy valuable a and reduced been have emissions this programme, gas greenhouse Through markets. export and domestic for gas associated commercialise last 20 years to capture and over the partnerships forged and of investments aseries made have (SCiN) in Nigeria Companies Shell government. Nigerian the jointthe flowfor venture and financial a and Nigerians for of energy a source into anenvironmental problem turning 2002, since by almost in Nigeria 90% (SPDC routine flaring JV) decreased has joint venture ofCompany Nigeria ShellThe Petroleum Development FLARING CONTINUOUS ENDING

the world, including Nigeria. Nigeria. world, including the around operations from its flaring gas associated to eliminate commitment 2015 its to pursue continues Shell “Zero Routine by Flaring 2030” initiative, World to the Bank’s asignatory As flaring. continuous to no have are designed all new facilities JV SPDC 2000, use. Since local for gas associated to capture the projects develop small-scale to partners other and government federal the with working been has JV SPDC the and are in remote areasof Nigeria flares low-volume Remaining with sites natural gas as liquefied (LNG). exported and use domestic for channelled be will in 2021. SSAGS from Gas Forcados and completed is to set be project gathering the of Forcados part gas- significant Yokri in 2019-2020,was commissioned a and (SSAGS) Solutions Gas which project, Swamp Associated Southern the include projects Recent examples gathering of gas

SPDC JV is reducing flared gas gas volumes flared reducing is JV SPDC

MMscf/d FLARED. ONCE WAS THAT GAS COLLECT THAT OPERATION INTO FACILITIES NEW BRINGING 1000 400 600 700 900 500 200 300 800 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 OMLs 4,38&41 Divested Year 2010 & 42Divested 28, 26,40 OMLs 2011 OMLs 34,30 Divested 2012 2013 OML 24 Divested 2014 OMLs 18,29 Divested 2015 2016 2017 2018 Divestment SPDC JV 2019 2020 DEEP-WATER PRODUCTION Contribution to Shell’s EXCEEDS EXPECTATIONS deep-water oil production

Spill prevention Spill Today, nearly one-third of Nigeria’s deep-water production comes from the Bonga and Erha fields. Shell Nigeria Exploration and Production Company Limited (SNEPCo, Shell interest 100%) 14% pioneered deep-water oil and gas

production from the Bonga field in the ENGINEER CARRIES OUT REGULAR CHECKS ON BARD THE BONGA FLOATING PRODUCTION, Contribution to Shell’s Gulf of Guinea where depths reach STORAGE AND OFFLOADING (FPSO) VESSEL IN THE DEEP WATERS OF THE GULF OF GUINEA. deep-water oil production Cohesive communities more than 1,000 metres.

Since production began in 2005, SNEPCo has interests in four deep-water SNEPCo usually contributes around 20%* Bonga alone has produced more than blocks, two of which it operates. SNEPCo to Shell’s global deep-water oil production 900 million barrels of oil. In 2020, the develops and deploys the latest deep- and its growth ambitions include SNEPCo 14% availability of the floating production, water drilling techniques to reduce drilling expansion of natural gas production. In storage and offloading (FPSO) vessel times, cut costs and increase production. addition to Bonga, SNEPCo’s exploration fell to 70% from 94% in 2019 due to the The Bonga FPSO vessel has a total activities have led to several significant

Powering the economy the Powering OPEC quota restrictions. For the same production capacity of 225,000 barrels discoveries of oil and gas over the last two reason, SNEPCo’s production in 2020 of oil per day and 150 standard cubic feet decades, including Bolia and Doro fields fell to 118,00 barrels of oil per day from of gas export per day. (55% Shell interest). 164,000 barrels in 2019. Shell in Nigeria in Shell Rest of *14% in 2020 due to reductions in productions Shell 86% 16 Shell in Nigeria briefing notes 2021 to accommodate OPEC

SPOTLIGHT

BONGA 7TH GENERATION The operation, completed in 2019, entailed RIG SET WORLD FIRST placing valves and delicate instruments in the well. Also, on the Bonga field

Spill prevention Spill “It’s incredible,” says Elohor Aiboni*, Bonga is a floating production, storage and Asset Operations Manager, describing the offloading (FPSO) vessel with a total rig active over the south-western portion production capacity of 225,000 barrels of the Bonga field where Shell Nigeria of oil per day and 150 standard cubic feet Exploration and Production Company of gas export per day. Limited (SNEPCo) operates. The height of a 12-storey building and The secret to SNEPCo’s success is spanning an area the size of three football

Cohesive communities its deployment of the latest proven fields, the FPSO extracts oil from more technology when it comes to exploring than 1,000 metres below sea level. Since and developing the oil and gas fields in production began in 2005, Bonga has the deep waters of the Gulf of Guinea. produced more than 900 million barrels This 7th generation, twin-decked rig cuts of oil. drilling times and costs and was the first in the world to perform a well drilling completion operation in a single trip

Powering the economy the Powering rather than several. Shell in Nigeria in Shell *Elohor Aiboni has been appointed Managing Director A 7TH GENERATION, STATE-OF-THE-ART, TWIN-DECKED RIG IS ACTIVE OVER THE SOUTH WESTERN PORTION OF THE BONGA FIELD. of SNEPCo, effective August 1, 2021.

17 Shell in Nigeria briefing notes 2021 INTERVIEW

ELOHOR AIBONI Managing Director of SNEPCo

EMPOWER PEOPLE Impact TO SUCCEED Our operational availability is on track. THE MAGIC Our safety record is good and we’re Spill prevention Spill in control of costs. We’ve got to ensure STARTS WHEN We speak with that our operational availability remains Elohor Aiboni*, the high and that we stay efficient and safe. YOU EMPOWER woman who runs Approach The magic starts when you empower PEOPLE Bonga oil and gas people. My teams know the asset better than anyone, so we ask them

Cohesive communities production to speak up. We train across multiple disciplines and use digital tools to Hopes Challenges improve productivity. We keep safe The Bonga field is prolific and we see We aim to work up new projects and by creating ‘family units’ that look a future. It’s professionally satisfying to investment opportunities that meet after each other and celebrate success. know that we have the technology to get international standards. Without these through our drilling campaigns and our opportunities, Shell loses and Nigeria loses. cost journey. With the right investment As a Nigerian, I don’t want that. climate, there could be more oil and gas

Powering the economy the Powering discoveries and the potential to expand and create jobs and opportunities for people. Shell in Nigeria in Shell *Elohor Aiboni has been appointed Managing Director of SNEPCo, effective August 1, 2021.

18 Shell in Nigeria briefing notes 2021 THE NIGER DELTA Following divestments of some assets in The SPDC JV’s production has shown Oil and gas is exported to global markets HEARTLANDS the Warri area of the Niger Delta and the significant growth over the past five via the Forcados and Bonny Terminals as recently announced sale of OML 17 in the years. Even with the reduced workforce well as the Sea Eagle floating production

Spill prevention Spill The Shell Petroleum Development eastern Niger Delta, the SPDC JV in line available due to COVID-19 and the storage and offloading (FPSO) vessel. Company of Nigeria joint venture with its current strategic intent continues OPEC quota cuts, the joint venture Gas is supplied to the domestic market (SPDC JV) focuses on oil and gas to streamline its portfolio. SPDC, as the produced around 503,000 barrels and to the export market through the production in the Niger Delta. The joint operator, is restoring and repairing oil and of oil per day – only a 2% fall on the Nigeria LNG plant. The SPDC JV supplies venture has the largest acreage in the gas wells. Many of these wells were either previous year’s production. approximately 50% of the Nigeria LNG country and operates a leased area damaged or closed due to previous unrest. plant capacity, largely from the Gbaran- of 31,000 square kilometres. It produces In 2020, the SPDC JV reopened a further Ubie and Soku plants. more than half a million barrels of oil 24 oil and gas wells.

Cohesive communities per day on average with capacity to The SPDC JV has produced neither oil produce more. nor gas in Ogoniland since 1993 and has transferred operatorship of its assets The Shell Petroleum Development in Ogoniland to the Nigerian Petroleum Company of Nigeria Limited Development Company (NPDC). However, (SPDC), wholly owned by Shell, the Trans Niger Pipeline (TNP), which has a 30% interest in the SPDC JV belongs to the SPDC JV and carries crude and is the operator. oil from various companies, passes through

Powering the economy the Powering Ogoniland. SPDC, as operator, responds to any operational incident that may occur on the TNP, as well as sabotage and theft incidents on the joint venture’s assets in the region. Shell in Nigeria in Shell

WORKERS AT AN SPDC JV GAS PLANT IN NIGERIA. 19 Shell in Nigeria briefing notes 2021 INTERVIEW

CHINYERE OZUMBA SPDC JV’s biodiversity and conservation specialist

BUILDING PARTNERSHIPS Impact FOR SUCCESSFUL We’ve implemented the IUCN Niger REMEDIATION Delta Panel recommendations and WE ARE

Spill prevention Spill now we’re improving things through our continued partnership with IUCN. BUILDING We speak to Together, we’ve done some pilot trials. We have approval from the regulators Chinyere Ozumba, to implement a risk-based approach PARTNERSHIPS SPDC JV’s biodiversity on the remediation of oil spills sites. and conservation Approach Hopes Challenges Cohesive communities We are asking the international and This project isn’t just about the SPDC JV When we go out into the field, we have specialist Nigerian remediation and conservation and IUCN. We work with Nigerian NGOs to get security clearance, we have to experts to give independent and Nigerian scientists on the ground. take escorts and we cannot be out at assessments of biodiversity recovery We’ve started conversations. We’re night. Sometimes, when the tides are at remediated sites. In the beginning, building partnerships and this process is wrong or there are floods, we can’t get I felt the experts should be able to holistic. We believe that with this project there. This meant we weren’t getting discuss the work without SPDC JV we can have success. enough time to do monitoring. Now, representatives. But I soon realised that we have trained locals do some of the

Powering the economy the Powering the experts didn’t fully understand the monitoring, take photographs and get terrain and weren’t always aware of the observations at night. security risks. Shell in Nigeria in Shell

20 Shell in Nigeria briefing notes 2021 MAKING A POSITIVE SCiN also believe in developing Nigeria’s Safety and security remain top priorities CONTRIBUTION talent of the future. The Shell Petroleum and SCiN apply international standards Development Company of Nigeria joint in Nigeria. They work closely with

Spill prevention Spill Shell Companies in Nigeria (SCiN) venture (SPDC JV) and Shell Nigeria communities, civil society, local businesses empower their employees and develop Exploration and Production Company and joint venture partners, as well as talent for the future. (SNEPCo) fund secondary and tertiary federal and state government agencies to education scholarships. These scholarships promote a secure and safe environment. SCiN invest in people with strong have provided opportunities to thousands They aim to achieve no harm to people technical and leadership capabilities, of Nigerian children in a country where and no leaks across operations. giving them the tools and accountability demand for schooling far exceeds supply. to deliver. SCiN directly employ around

Cohesive communities 2,700 people and more than 9,000 SCiN also invest in affordable and contractors in Nigeria. The majority of accessible health care to help improve Shell’s staff (97%) are local Nigerians. the well-being of the communities where we operate.

SCiN operate to high international standards when it comes to safety, governance, the environment and our

Powering the economy the Powering impression on neighbouring communities. To achieve this, we encourage strong leadership that empowers employees to act responsibly and we work with all 2,700 9,000 partners to set mutually agreed objectives and implement strategies. employees contractors Shell in Nigeria in Shell

21 Shell in Nigeria briefing notes 2021 In Nigeria, SCiN drive safety SCiN aim to minimise the impact on In 2017, the SPDC JV and IUCN joined performance by constantly discussing the environment using a tool called the forces on the Niger Delta Biodiversity with staff their challenges and mitigation hierarchy. Where avoidance Technical Advisory Group, which also

Spill prevention Spill dilemmas. SCiN expect staff and is not possible, we aim to minimise our includes representatives from the Nigerian contractors to comply with safety impact and, where necessary, we apply Conservation Foundation. In 2020, the rules and regulations relevant to their mitigation measures and actively monitor advisory group assessed the baseline field work, to intervene to prevent unsafe their success. Where our operations reports of two pilot sites containing fresh conditions and to respect fellow have affected biodiversity and the water and swamp forests and set out its workers, the communities in which we communities that rely on biodiversity for aims and timeline for work at the sites. work and the environment around us. their livelihoods, we seek to help restore Field visits to the remote locations were impacted habitats. disrupted due to COVID-19 restrictions.

Cohesive communities SCiN also continue to contribute to the safety of communities around The International Union for Conservation facilities by responding to third-party of Nature (IUCN) and the SPDC JV have emergencies in the communities where worked together since 2012 in Nigeria they operate. In 2019, they responded to enhance remediation techniques and to 44 incidents. protect biodiversity at sites affected by oil spills. This work includes using When it comes to biodiversity and bioremediation, a process that uses micro-

Powering the economy the Powering ecosystems, SCiN seek to make an organisms to naturally break down, and overall positive contribution where ultimately remove, oil contamination. we operate. Shell in Nigeria in Shell

22 Shell in Nigeria briefing notes 2021 SPOTLIGHT

ETHICS AND COMPLIANCE For the last three years, Shell Companies Shell subsidiaries and associates in Nigeria (SCiN) have hosted Ethics and operating in Nigeria are party to various Read the response to recent Shell has a set of core values – honesty, Compliance (E&C) events. In 2020, the environmental and contractual disputes litigation cases here

Spill prevention Spill integrity and respect for people – which E&C day was held virtually with online brought in the courts of Nigeria, England underpin our strategy and operations sessions over five days to include in-depth and the Netherlands https://www.shell.com/media/ around the world. workshops on business integrity, data news-and-media-releases/2021/shell- privacy, harassment, anti-bribery and comments-on-the-verdict-from-the- Shell business principles put strong corruption and anti-money laundering. milan-tribunal-over-opl-245.html emphasis on ethical conduct among its employees, with a hotline where The Shell Code of Conduct applies to every concerns can be raised and a unit that employee and contractor who works for

Cohesive communities investigates incidents and takes tough or on behalf of Shell. It sets out expected action – where necessary – against behaviours of Shell employees. Shell’s Ethics anyone involved in breaches of its code and Compliance Manuals build on the of conduct. Shell General Business Principles and the Shell Code of Conduct to provide practical The Shell General Business Principles, advice on how to comply with laws and Code of Conduct and Ethics and regulations and how to relate to customers, Compliance Manual help Shell communities and colleagues.

Powering the economy the Powering employees, contractors and those working in joint ventures that Shell operates act in line with our core values – honesty, integrity and respect for people – and comply with relevant laws and regulations. Shell in Nigeria in Shell

23 Shell in Nigeria briefing notes 2021 IN 2020, THE ETHICS AND COMPLIANCE DAY WAS HELD VIRTUALLY WITH ONLINE SESSIONS. Nigeria’sGAS-POWERED economy ELECTRICITY IS BEGINNING TO REPLACE DIESEL GENERATORS AT ONE OF AFRICA’S LARGEST OPEN MARKETS.

POWERING THE ECONOMY Spill prevention Spill This is the story of how a revolution in energy is driving new economic opportunities in Nigeria. Cohesive communities POWERING Powering the economy THE NIGERIAN

Shell in NigeriaShell in ECONOMY

24 Shell in Nigeria briefing notes 2021 FOR NIGERIANS, ACCESS TO AFFORDABLE, RELIABLE AND CLEANER ENERGY THAT 621k SPDC JV $900mln In taxes and royalties $

Spill prevention Spill SNEPCo CAN CHANGE THEIR LIVES, Barrels of oil equivalent in 2020 (SPDC and SNEPCO) THEIR BUSINESSES AND THEIR per day produced in 2020 ECONOMY, IS NOTHING SHORT OF THE OPPORTUNITY OF A GENERATION. Ca.2,700 Cohesive communities Employees $800mln Shell Companies in Nigeria (SCiN) Spent on contracts to Nigerian stimulate supply chains, knowledge companies in 2020 (SCiN) transfer and employment. SCiN employ Nigerians in all roles and 97% of the around 2,700 employees in the country are nationals. Nigerian staff also work outside Nigeria and share their expertise Powering the economy with their colleagues in Shell’s operations around the world.

The Nigeria Briefing Notes update on activities and programmes undertaken by several Nigerian companies either wholly owned by Shell or in which Shell has an interest. Together, three of these are referred to as the Shell Companies in Nigeria (SCiN).

Shell Petroleum Development Company of Nigeria Limited (SPDC); a wholly-owned Shell subsidiary, which operates an unincorporated joint venture (SPDC JV) in which SPDC holds a 30% interest.

Shell in NigeriaShell in Two other wholly-owned Shell subsidiaries; Shell Nigeria Exploration and Production Company Limited (SNEPCo) and Shell Nigeria Gas Limited (SNG).

The fourth is Nigeria Liquefied Natural Gas (NLNG) Limited; an incorporated joint venture in which Shell B.V. has a 25.6% interest. 25 Shell in Nigeria briefing notes 2021 BUILDING THE NATURAL economy. Shell Companies in Nigeria GAS INFRASTRUCTURE (SCiN) can provide the capital, strong FOR WEST AFRICA’S governance and technical and project

Spill prevention Spill LARGEST ECONOMY expertise that will all help to unlock opportunities for Nigeria and Nigerians. Nigeria can be a West African powerhouse economy of food, fashion, Nigeria has some of Africa’s largest football and industrial goods. The country reserves of oil and natural gas2, giving earns significant revenues from the oil it the resources to build a prosperous and gas industry, but its dynamic economy economy for its growing population is increasingly diverse. By the end of of around 200 million people. And

Cohesive communities 2020, nearly 95% of Nigeria’s gross yet today, development in Nigeria is ONE OF SEVERAL GIANT GAS TANKS AT THE NLNG EXPORT TERMINAL. domestic product was from other sectors held back by a lack of infrastructure. of the economy.1 Intermittent power from the electricity grid causes power shortages in urban Energy can be a powerful driver of and rural areas. Building energy In 2020, Nigeria’s Minister of State for The Shell Petroleum Development Company sustainable development. The federal infrastructure is a priority for Petroleum Resources, H.E. Timipre Sylva, of Nigeria joint venture (SPDC JV) has long government of Nigeria is seeking ideas Nigerians3, as well as their international introduced the National Gas Expansion produced oil in the Niger Delta. Today, it and investment that will modernise the customers and investors. SCiN are Program and declared 2020 the ‘year aims to produce more natural gas, much of

Powering the economy country’s energy infrastructure and supporting the development of both of gas’ and the start of a ‘gas decade’ which was once flared, but is now gathered perhaps pave the way to a more inclusive on-grid and off-grid energy solutions. which will see the country utilise its for domestic power supply or exported as gas resources. liquefied natural gas (LNG). 1 Nigerian National Bureau of Statistics GDP Report Q4 and full year 2020 2 https://www.iea.org/countries/Nigeria 3 https://www.worldbank.org/en/news/press- release/2020/06/23/nigeria-to-keep-the-lights-on- Shell in NigeriaShell in and-power-its-economy

26 Shell in Nigeria briefing notes 2021 The Southern Swamp Associated Gas The development aims to help the federal Solutions project was commissioned government deliver on its ambition to in 2019-2020. The Shell Petroleum provide gas for domestic consumption,

Spill prevention Spill Development Company of Nigeria joint power generation and gas-based ammonia venture (SPDC JV) is planning to reduce and urea fertilizers for farmers. The other associated gas flaring further through its three projects are in early stages and Forcados Yokri gas-gathering project, of investment decisions have not been taken. which large parts are set to be completed However, if all four projects were completed, in 2021. together they might be expected to deliver more than three billion standard cubic feet The SPDC JV is also working with the of gas per day for domestic use and export.

Cohesive communities federal government and Nigerian National Petroleum Corporation (NNPC) The SPDC JV also operates the Gbaran-

THE SOUTHERN SWAMP ASSOCIATED GAS on developing four of the government’s Ubie gas plant in the heart of the Niger SOLUTIONS PROJECT WAS COMMISSIONED. seven critical gas supply projects. Delta. In 2019, Gbaran-Ubie achieved peak production with about 175,000 barrels One of these projects is the Assa North/ of oil equivalent per day – approximately Ohaji South Gas Development Project 864 million standard cubic feet per day in Imo State where construction began and 26,000 barrels of condensate per

Powering the economy THE SOUTHERN SWAMP in 2019. The project, with a capacity for day. Much of this gas is for export but 300 million standard cubic feet of gas Shell Nigeria Gas Limited (SNG) has ASSOCIATED GAS per day, has the potential to be one of signed agreements to supply gas to SOLUTIONS PROJECT the largest domestic gas projects in customers in industrial clusters and parks WAS COMMISSIONED Nigeria when completed. in Bayelsa State. Shell in NigeriaShell in

27 Shell in Nigeria briefing notes 2021 UNLOCKING NIGERIA’S It plans to develop the gas sector to drive Only two of Nigeria’s 36 states generate The Shell Petroleum Development NATURAL GAS FOR the domestic economy and for export as more revenue than they receive from Company joint venture (SPDC JV) is PROSPERITY the energy transition demands increased the federal government and both working with the federal government of

Spill prevention Spill supply of fuels like natural gas*. Natural have burgeoning commercial centres Nigeria on four of its seven critical gas Industrial and commercial customers in gas emits between 45% and 55% fewer increasingly powered by natural gas. The development projects. The projects are: Nigeria are demanding reliable, cleaner greenhouse gas emissions and less than first is Lagos with its large manufacturing ■ Assa North/Ohaji South field. and more efficient energy products. one-tenth of the air pollutants than coal and services economy and the other is Natural gas and off-grid renewable when used to generate electricity. Ogun where a growing industrial cluster, ■ The 4 unitised gas fields – Samabri- energy are at the heart of this development “the Golden Mile”, is generating growth. Biseni, Akri-Oguta, Ubie-Oshi and opportunity. Shell Companies in Nigeria Nigeria currently has around 12 gigawatts Afuo-Ogbainbri. (SCiN) are involved in both. (GW) of installed electricity capacity but The federal government has also been ■ Gas supply to Brass Fertilizer Cohesive communities often less than 5 GW is available in the working on modernising the governance Company. Nigeria has around 202 trillion cubic feet grid due to transmission capacity and and regulation of the oil and gas industry of proven gas reserves and about 600 other challenges. The federal government to stimulate investment and accelerate the ■ Okpokunou/Tuomo West field cluster. trillion cubic feet of unproven reserves, wants to increase this to 25 GW and growth of its energy sector. The Petroleum The Assa North/Ohaji South gas according to the government-owned this represents a huge development Industry Bill is likely to be granted development project is under construction Nigerian National Petroleum Corporation opportunity for Nigeria’s domestic gas Presidential assent in 2021. and is expected to be one of the largest (NNPC). industry. The shortfall in grid electricity gas facilities in Nigeria. The other three are is commonly made up for with back- in early stages of planning.

Powering the economy The federal government of Nigeria has up generators. These are used in their made it an economic priority to harness thousands to power everything from the potential of its natural resources to manufacturing production lines to air- bring power and prosperity to its people. conditioning in offices and the lights in a market stall. Shell in NigeriaShell in *https://www.worldbank.org/en/news/press-release/2020/06/23/ nigeria-to-keep-the-lights-on-and-power-its-economy

28 Shell in Nigeria briefing notes 2021 SPOTLIGHT

FROM THE NIGER DELTA TO THE STALLS OF ARIARIA MARKET Spill prevention Spill 2mln With about 2 million traders, Ariaria International Market is one of the largest traders operate at the markets in West Africa, renowned for its Ariaria International Market shoe-making and leather works. The open- air market is located in Aba, a city in Abia State in the southeast of Nigeria.

THE ARIARIA MARKET IN ABIA STATE IS RENOWNED Cohesive communities FOR SHOE-MAKING, TAILORING AND LEATHER WORKS. 4,000 Traders at the market have traditionally used petrol and diesel generators to businesses potentially power their lights and equipment but supplied with electricity Shell Nigeria Gas Limited (SNG) is now supplying natural gas to Ariaria Market Energy Solutions Limited, the Independent

Powering the economy Power Project (IPP) consortium that provides electricity to the market. This supply helps to create electricity for the 4,000 businesses. The gas comes from the oil and gas fields of the Niger Delta and is produced by the the Shell Petroleum Find out more and watch, Powering

Shell in NigeriaShell in Development Company of Nigeria joint Nigeria’s Largest open-air Market venture (SPDC JV) which supplies about with Natural Gas: 10% of Nigeria’s domestic gas. 29 Shell in Nigeria briefing notes 2021 youtu.be/KKju0Zgnnq4 EXPANDING POWER In 2020, SNG completed the final phase TO COMMERCIAL AND of its 20-kilometre domestic gas pipeline INDUSTRIAL CUSTOMERS expansion project in Abia State. The

Spill prevention Spill pipeline connects three key industrial In a carbon-constrained and zones and has enabled the supply of environmentally-conscious world, or one gas to an independent consortium that that just wants less noise and exhaust provides electricity to the Ariaria market, smoke from old diesel-run electricity and industrial customers including NICEN generators, Nigeria’s commercial and Industries Ltd. industrial sectors are looking for energy solutions they can afford and rely on. In 2020, SNG signed a Memorandum

Cohesive communities of Understanding (MoU) with the Oyo Shell Nigeria Gas Limited (SNG), with State Government for the acceleration a transmission network of over 150 of domestic gas infrastructure development kilometres, is at the forefront of connecting to enable distribution of cleaner and more natural gas to commercial customers and reliable energy to industries in Oyo State. manufacturing plants. SNG also began building a large gas processing plant in the city of Aba, SNG has quickly grown to supply Abia State.

Powering the economy Nigeria’s largest industrial hubs in Lagos and Ogun states and is rapidly expanding SNG has also signed agreements to into other states. SNG has 120 commercial supply gas to customers in industrial and industrial customer and has signed clusters and parks in Bayelsa State. agreements with a further 30 customers in Lagos, Ogun, Abia, Rivers and Bayelsa states. Shell in NigeriaShell in

SNG PLANT. 30 Shell in Nigeria briefing notes 2021 SPOTLIGHT

GAS BRINGS STABILITY “Since SNG started working with us, “When it comes to a reliable supply of TO BUSINESSES we have had high-quality service. Even natural gas, there is no comparison and MORE when gas pressure fluctuates, SNG lets switching to natural gas 10 years ago

Spill prevention Spill “Making paints and plastics demands us know in time so we can take measures was a step we have never regretted. INVESTMENT a steady amount of energy. So, it was to avoid unnecessary losses. Even during The challenges experienced during the a big relief when SNG said it wanted the COVID-19 shutdowns in 2020, SNG COVID-19 pandemic have reinforced our SHOULD BE to construct a pipeline for gas in Aba. ensured a stable supply of natural gas motivation and proven that natural gas is MADE IN This development will put life back to keep our company’s production and the way forward for our industry.” into a lot of industries. operation going as normal.” INFRASTRUCTURE NICOLAS PAULOVITS Since SNG has been supplying gas to our CAI GUO Director NOVOGAS THOUGH TO HELP

Cohesive communities premises, we’ve seen costs lowered and General manager of CNG GLASS downtime reduced to the barest minimum. (NIGERIA) FZE OPERATIONS We can keep up with our customers’ RUN SMOOTHLY demands and they are happy. More investment should be made in infrastructure NOVOGAS EMPLOYEES AT WORK. to help operations run smoothly.”

CHIEF CHRISTOPHER EZENDIOKWELU

Powering the economy Managing director of NICEN Industries Ltd Shell in NigeriaShell in

31 Shell in Nigeria briefing notes 2021 INTERVIEW

HELPING BUSINESSES Impact Hopes Challenges GROW WITH RELIABLE We have helped unlock Nigeria’s We want to grow. We want to make a We encourage government to examine ENERGY commercial and industrial sector. Our difference. We continually ask: How do we the current regulatory framework to see

Spill prevention Spill customers come to us because we change livelihoods? How do we provide? how it might be improved to attract more provide reliable energy and we’re How do we provide a sense of stability? investments. We speak to transparent on pricing. With SNG gas, We do this through our infrastructure, customers can grow their business and through our LiveWIRE programmes, Ed Ubong, SNG’s employ more people and the state through our financial support to small firms. managing director governments can get more revenue. Approach

Cohesive communities We are very transparent with our prices and our readings. We have a one-to- one relationship with each customer and speak to them at least twice every month. We ask them about their plans and what they need to continue to stay WE WANT ahead of the competition. We agree long-term contracts, which helps everyone TO MAKE A

Powering the economy plan. Over the last two years, we have expanded from three states into six states. DIFFERENCE

ED UBONG

Shell in NigeriaShell in SNG’s Managing Director

32 Shell in Nigeria briefing notes 2021 SUPPORTING ENERGY START-UPS

Spill prevention Spill Shell aims to provide a reliable electricity supply to 100 million people, primarily in emerging markets by 2030. Nigeria features in that vision. Enterprise development, opportunities for education and access to affordable health care hinge upon access to reliable and cost-effective energy. EMPLOYEES ASSEMBLE SOLAR PANELS AT A FACTORY IN LAGOS. Cohesive communities

For the millions of Nigerians excluded All On was established to boost off-grid Unreliable power supply in some areas ■ a strategic investment in domestic from the country’s power grid, Shell supply to homes and small and medium- caused great concern during the pandemic manufacture of solar panels. This Companies in Nigeria (SCiN) hope that sized businesses in the Niger Delta. All about whether COVID-19 testing and reduces strain on foreign currency their substantial funding to create a not- On aims to help create a more enabling treatment facilities would be able to function. exchange and makes the panels for-profit-impact-investing company called environment for start-ups and to provide more readily available. All On will bring reliable electricity – often them with low-cost financing to expand In response, All On announced: ■ a seed-amount grant each to seven from renewable energy sources – to these access to energy to about 5 million people. ■ a $470,000 (N$180 million) Solar energy start-ups, whose innovative

Powering the economy urban and rural customers. SCiN provided All On became operational in 2017 and is Relief Fund for renewable energy products span renewable energy $21 million in funding to All On in 2020. an independent Nigerian company. companies to provide solar power services, including mobile solar-powered for emergency health centres to help charging systems, battery-operated them fight the pandemic. solar generators, waste-to-gas technologies and a patented solar inverter system. Shell in NigeriaShell in

33 Shell in Nigeria briefing notes 2021 INTERVIEW

GETTING NIGERIANS Impact AFFORDABLE, ENERGY IS WHAT WE DO Nigerians deserve more reliable energy. Positive change is coming.

Spill prevention Spill Already All On has invested in 30 off- AVAILABLE ENERGY We speak to grid energy companies and two funds, leading to 29,500 new connections for CHANGES LIVES Dr. Wiebe Boer, low income households and businesses. The journey is just beginning. CEO, All On DR. WIEBE BOER Approach Hopes CEO, All On Getting Nigerians energy is what Affordable, available energy changes

Cohesive communities we do. Today, grid electricity can be lives. School kids can do their homework, unreliable and back-up generators are agriculture products can be processed expensive and noisy. We help finance and preserved, businesses can thrive, and businesses that use emerging clean hospitals and schools can function. energy technologies to support the creation and growth of sustainable Challenges off-grid energy businesses for urban About 75% of Nigerian households and and rural customers. small businesses are either off-grid or

Powering the economy have poor-grid connection. The scale of the energy access gap in Nigeria is a formidable and urgent problem. My challenge is how I get things done fast enough to make a significant impact without compromising on safety, quality,

Shell in NigeriaShell in or anything else.

34 Shell in Nigeria briefing notes 2021 INTERVIEW

START-UP BRINGS Impact Hopes POWER TO PEOPLE AND Before we brought solar energy to Our ambition is to help reduce the energy HELPS PROTECT LOCAL our customers, these households had gap by helping to meet the energy needs

Spill prevention Spill ECONOMIES no access to electricity. We’ve helped of Nigeria’s population in the coming years. transform their lives. Solar energy has slowed the flow of people leaving these Challenges We speak to communities for the cities. Today we are Raising awareness among people and a leading renewable energy solution regulators is a challenge. This requires Ifeanyi B. Orajaka, provider with operations in eight states, constant engagement and visits to managing director, serving over 11,000 households. communities. We also need to identify and hire people with the right skills to help Cohesive communities GVE Projects Ltd., Approach lead our organisation to the next level. We regularly speak to people asking a beneficiary of them what would give them confidence IT’S BEEN All On in solar. We’re rolling out initiatives and programmes that would drive A REALLY renewable energy solutions across the country. We’re also constantly updating IFEANYI B. ORAJAKA potential investors to attract the right Managing Director, GVE Projects Ltd EXCITING Powering the economy support for growing the business. JOURNEY Shell in NigeriaShell in

35 Shell in Nigeria briefing notes 2021 SPOTLIGHT

SUSTAINABLE DEVELOPMENT THROUGH ACCESS TO ENERGY Spill prevention Spill

“When it comes to achieving Sustainable DAMILOLA OGUNBIYI “The U.S. African Development Foundation Development Goal 7, Nigeria is one of CEO and Special Representative (USADF) and All On entered a partnership the most important countries globally. Our of the UN Secretary-General for in 2017 with the objective of expanding collective effort in Nigeria shows how data, Sustainable Energy for All and access to energy in Nigeria. Since its policy and finance working in unison can Co-Chair of UN-Energy inception, USADF and All On have Cohesive communities accelerate progress on this goal.” awarded $2.4 million in blended finance (grants and loans) to 24 Nigerian-owned SMEs, positively impacting thousands of lives and livelihoods and aiding the growth of Nigeria’s renewable energy sector.”

C.D. GLIN President and CEO U.S. African

Powering the economy Development Foundation Shell in NigeriaShell in

36 Shell in Nigeria briefing notes 2021 HUGE INVESTMENT IN Shell Gas B.V. and its partners took The expansion would ensure Nigeria’s GLOBAL GAS a final investment decision at the end continued place as a global player in an of 2019 on a new LNG processing unit energy source that helps replace coal- Spill prevention Spill Global demand for liquefied natural gas at Nigeria LNG Limited (NLNG). The use in power plants. Natural gas emits 360mt (LNG) continues to grow and Shell is expansion is expected to create around between 45% and 55% fewer greenhouse investing in Nigeria’s gas infrastructure so 12,000 jobs during construction and gas emissions and less than one-tenth of Global demand for LNG grew that the country can benefit even more stimulate growth of the local oil and gas the air pollutants than coal when used to in 2020 to 360 MT from export revenues. services sector. The new unit, known as generate electricity. Train 7, is expected to add around 8 million The Shell LNG Outlook finds that global tonnes per annum of capacity to the Bonny demand for LNG increased to 360 million Island facility, taking the total to around 30

Cohesive communities tonnes in 2020. Though marginal, the million tonnes per annum. Construction is increase in volume reflects the resilience expected to take a number of years. and flexibility of the global LNG market in 2020, despite being a year which saw losses to global GDP as economies large and small struggled to contain the COVID-19 outbreak. Powering the economy Shell in NigeriaShell in shell.com/energy-and-innovation/ natural-gas/liquefied-natural-gas-lng/ 37 Shell in Nigeria briefing notes 2021 lng-outlook-2021

WORKERS AT THE LIQUEFIED NATURAL GAS (LNG) EXPORT TERMINAL AT BONNY ISLAND, NIGERIA WHICH NLNG DECIDED TO EXPAND IN 2020. DEVELOPING cut their teeth on this project, developing improving skills of young Nigerians in In addition to this, the Shell Petroleum DEEP-WATER EXPERTISE knowledge and skills that would advance relevant courses, with a view to building Development Company of Nigeria joint the country’s oil and gas sector. a competent skill pool for the oil and venture (SPDC JV) established an ultra-

Spill prevention Spill Shell honed its deep-water skills in the gas industry. modern Marine and Offshore Engineering United States of America and three Since 2010, industry-wide production from Centre of Excellence (MCOE) in Bonny, decades ago brought this expertise to these deep-water fields has added more In 2020, 31 Nigerian academics and an Atlantic port in Rivers State. MCOE Nigeria. The Shell Nigeria Exploration and than 930,000 barrels per day research interns joined in the annual contributes to developing maritime skills Production Company Limited’s (SNEPCo) to Nigeria’s total oil output, which is SNEPCo and SPDC JV sabbatical and keeping them in Nigeria. Courses vision is simple: to be the best deep-water around 2 million barrels per day. programme and research internship – include liquid cargo operations; marine business in the world. The Gulf of Guinea continues to offer the highest number of participants in engineering high voltage training; opportunity and in the right investment the 40-year history of the programme. emergency response; marine navigation;

Cohesive communities SNEPCo pioneered the advance into and regulatory environment, SNEPCo human elements leadership management; Nigeria’s deep-water frontier and today its will consider expanding its Bonga The programmes provide Shell Companies and simulator ship handling training. operation is run by Nigerians and usually operations into Bonga North and Bonga in Nigeria (SCiN) with specialised contributes around 20% to Shell’s total South West where the company has a services, while the participants acquire deep-water oil production. 55% shareholding. industry experience and exposure to new technologies that can be introduced into the The development of the Bonga field by SNEPCo continues to cultivate university curriculum and which cover areas SNEPCo gave rise to the first generation Nigerian engineers through its annual such as biodiversity, petroleum engineering,

Powering the economy of Nigerian deep-water oil and gas university scholarships programme. geophysics, environmental impact engineers. SNEPCo was the first Nigerian This initiative which includes opportunity assessment, community and occupational company to venture into the deep waters for an internship, mentorship from health, oil spills remediation, social of the Gulf of Guinea and this required the volunteer SNEPCo staff and a full-range performance, and oil and gas exploration. application of cutting-edge technology. health insurance coverage, is targeted SNEPCo hired Nigerian engineers who at promoting academic excellence and Shell in NigeriaShell in

38 Shell in Nigeria briefing notes 2021 INVESTING IN BUSINESS SCiN employees in Nigeria work to In 2020, 100% of SCiN contracts, worth DEVELOPMENT, SPECIALIST global standards, are exposed to ideas $800 million were awarded to Nigerian SKILLS, TRAINING AND and training and are empowered to companies. SCiN have also provided Spill prevention Spill EDUCATION make decisions and deliver. However, access to nearly $1.5 billion in loans to 100% talent building starts through support for 764 Nigerian vendors under the Shell A country’s economic success depends on Nigerian students via its social investment Contractor Support Fund since 2012. of Shell Companies in Nigeria contracts its access to energy but also on investment initiatives. SCiN also provide specialised These loans help improve tendering worth $800 million were awarded in education and training for individuals, training for semi-skilled Nigerians to work opportunities. to Nigerian companies and access to finance and contracting in the energy industry as welders and opportunities for companies. scaffolders, for example. SCiN’s activities continue to help create Nigerian businesses that can provide

Cohesive communities Shell Companies in Nigeria (SCiN) The development of strong supply technical and support services to the respond to this need through core business chains in Nigeria can benefit local industry. This includes the manufacture activities and through investing some $50 economies and communities but small of tools and technical kits, the operation $1.5bln million each year in community, education, and medium-sized companies sometimes of helicopter flights in the Niger Delta, health and entrepreneurship programmes. struggle to achieve the necessary strategic partnerships between foreign and in loans to 764 Nigerian vendors under the certification for their products and services. local companies to stimulate technology Shell Contractor Support Fund since 2012 This can prevent them from qualifying for transfer and capacity development. tenders and contracts to provide goods

Powering the economy and services. A lack of capital can also hinder companies from competing for and executing contracts effectively. Shell in NigeriaShell in

39 Shell in Nigeria briefing notes 2021 HELPING TO BUILD “We identified a local company and LOCAL BUSINESSES my team worked with them. We got it done and we will continue to build local

Spill prevention Spill Shell Companies in Nigeria (SCiN) capacity as much as possible.” contribute to the development of the Nigerian business sector by contracting ELOHOR AIBONI local companies. Asset Manager Bonga FPSO

Shell Nigeria Exploration and Production Company (SNEPCo) has awarded major engineering and construction contracts to

Cohesive communities companies that are indigenous, have local staff, or possess domestic capabilities in the country. These companies were involved in the installation of new production manifolds, subsea umbilical systems, oil production and water injection flowlines. SNEPCo continues to use local companies.

Powering the economy Take the Bonga FPSO, for example. During the COVID-19 lockdown, it wasn’t possible to send equipment overseas for maintenance and yet a crucial compressor required an overhaul. Shell in NigeriaShell in

40 Shell in Nigeria briefing notes 2021

SNEPCO CONTRIBUTES TO THE DEVELOPMENT OF NIGERIAN ENGINEERING. INTERVIEW

THE MORE LOCAL CONTRACTORS DO, Impact Approach Hopes THE BETTER THEY GET There is a much stronger ambition now We need to continue having rational, I’m optimistic. The talent, understanding to build Nigerian capability. Creating professional discussions with government and eagerness to deliver a project like

Spill prevention Spill investment stability with enabling stakeholders about developing local Bonga South West Aparo is here. If we We speak with terms and lease extension will spark a businesses. The more projects we get, the collectively get the enablers right, it will renaissance for the Nigerian deep-water better it is for developing capability. It’s like bring back the activity and growth beyond Adam Bradley, who oil and gas industry. with anything, the more you practice the what we’ve previously seen in Nigeria. manages Bonga better you get. Contracting transparency and ethics is essential. Challenges South West Aparo Nigerian capability will need rebuilding and the cost of that must be spread

Cohesive communities across developments.

ADAM BRADLEY IT’S BEEN A REALLY Bonga South West Aparo Manager EXCITING JOURNEY Powering the economy FOR US AND FOR THE PEOPLE TO WHOM WE’VE BROUGHT ELECTRICITY Shell in NigeriaShell in

41 Shell in Nigeria briefing notes 2021 HELPING Spill prevention Spill BUILD COHESIVE COMMUNITIES Cohesive communitiesCohesive

COHESIVE COMMUNITIES

Nigeria is a thriving and vibrant country,

Powering the economy the Powering offering opportunities for people to improve their livelihoods. Shell in NigeriaShell in

42 Shell in Nigeria briefing notes 2021

GOVERNMENT, NON-GOVERNMENTAL ORGANISATIONS AND COMPANIES HAVE A ROLL IN GIVING NIGERIA’S YOUNG POPULATION THE BEST START. THE SCALE OF THE OPPORTUNITY mln FOR NIGERIA IS MIRRORED $49.4 10 0,000 In direct social investment in 2020 people have benefitted Spill prevention Spill BY THE SCALE OF THE (The SPDC JV, SNEPCo and SNG) from Health in Motion CHALLENGES. THE GOVERNMENT, NON-GOVERNMENTAL Community-driven ORGANISATIONS (NGOS) AND programmes since 2017 worth (SPDC JV)

Cohesive communitiesCohesive COMPANIES HAVE A ROLE TO 6,000+ PLAY, ESPECIALLY DURING $87.3mln University grants since 2011 (SCiN) A GLOBAL PANDEMIC.

Shell Companies in Nigeria (SCiN) and joint venture partners have made direct

Powering the economy the Powering voluntary social investments of $40 million to $50 million each year over the last five years to help improve the lives

of millions of Nigerians. These social The Nigeria Briefing Notes update on activities and programmes undertaken by several Nigerian companies either wholly owned by Shell investments are targeted at health-care or in which Shell has an interest. Together, three of these are referred to as the Shell Companies in Nigeria (SCiN). Shell Petroleum Development Company of Nigeria Limited (SPDC); a wholly-owned Shell subsidiary, which operates an unincorporated and education initiatives and supporting joint venture (SPDC JV) in which SPDC holds a 30% interest.

Shell in NigeriaShell in young Nigerian entrepreneurs. Two other wholly-owned Shell subsidiaries; Shell Nigeria Exploration and Production Company Limited (SNEPCo) and Shell Nigeria Gas Limited (SNG).

The fourth is Nigeria Liquefied Natural Gas (NLNG) Limited; an incorporated joint venture in which Shell B.V. has a 25.6% interest. 43 Shell in Nigeria briefing notes 2021 SOCIAL INVESTMENT Shell Companies in Nigeria (SCiN) SCiN are asked to contribute to many IN NIGERIA undertake two types of voluntary social good causes, but we believe that investment activities: affordable quality health care, education

Spill prevention Spill Social investment programmes in Nigeria and entrepreneurialism are critical enablers are delivered through collaboration and ■ Direct social investment across to any community. They improve the quality Find out more and watch, Providing cooperation with communities, schools, Nigeria, which focuses on community of life for individuals, strengthen families, Community health in Nigeria with universities, health services, civil society and enterprise development, education, and offer better livelihood prospects for Affordable Insurance: and often alongside state governments community health, access-to-energy, current and future generations. and institutions. Most programmes extend road safety, and since 2018, biodiversity. youtu.be/4rzMEvwtdik over decades to ensure a sustainable and SCiN also provide support for ■ Community-driven development lasting positive impact. humanitarian and safety programmes, programmes and initiatives in the Cohesive communitiesCohesive such as those providing relief to displaced Niger Delta, which focus on various persons in north-eastern Nigeria or training themes as determined by benefiting for emergency workers. communities, which are delivered through a Global Memorandum of Understanding (GMoU). A GMoU is an agreement between the Shell Petroleum Development Company of Nigeria joint venture (SPDC JV) and a cluster Powering the economy the Powering of several communities. Shell in NigeriaShell in

44 Shell in Nigeria briefing notes 2021

COMMUNITY-LED PROJECTS CAN COVER HEALTHCARE, EDUCATION, ENTERPRISE DEVELOPMENT AND SOCIAL INFRASTRUCTURE. SPOTLIGHT

COMMUNITY-LED SOCIAL Clusters are based on local government This ensures the communities have stable INVESTMENT INITIATIVES or clan/historical affinity lines as advised and reliable finances as they undertake by the relevant state government. There the implementation of their community Spill prevention Spill The Shell Petroleum Development Company are currently 40 active GMoUs in Abia, development plans. GMoU projects $250mln of Nigeria joint venture (SPDC JV) delivers Bayelsa, Delta, Imo and Rivers States. In can cover community health, education, much of its social investment through 2020, the SPDC JV renewed six GMoUs enterprise development and social to communities since introducing GMoUs community-driven programmes and and entered into a new one. infrastructure, such as improved water in 2006 as a new way of working initiatives in the Niger Delta. Community- and power supply, and sanitation. with communities driven programmes are determined by Since introducing GMoUs in 2006 as the communities themselves and delivered a new way of working with communities, The GMoUs represent an important shift through a Global Memorandum of the SPDC JV, has disbursed more than in approach, placing emphasis on more

Cohesive communitiesCohesive Understanding (GMoU) between the SPDC $250 million to communities. transparent and accountable processes, JV and a cluster of several communities. intensified communication with the Under the terms of the GMoUs, the grassroots, sustainable solutions and communities implement development stronger communities. projects of their choice, while the SPDC JV provides secure funding for five years. Powering the economy the Powering Shell in NigeriaShell in

45 Shell in Nigeria briefing notes 2021 COVID-19 RESPONSE on partnership – collaboration with the SUPPORT state governments, non-government COVID-19 FEEDING organisations and certified caterers to

Spill prevention Spill Shell Companies in Nigeria (SCiN) provide freshly cooked meals daily to SUPPORT FOR PATIENTS responded quickly with money, materials patients and health-care workers at the AND FRONTLINE and actions to help protect staff, isolation centres. This intervention has contractors, the communities where provided almost 50,000 meals to infected HEALTH WORKERS we operate and to lend support to the individuals in the isolation centres. Nigerian state and federal governments. Dr. Chikwe Ihekweazu, Director General The response built on decades of support at The Nigeria Centre for Disease Control

Cohesive communitiesCohesive for Nigerian health services and so SCiN (NCDC), commended SCiN for their could move quickly to donate ambulances, critical support to the country’s response ventilators, testing machines and kits, activities to COVID-19, as they did during medical consumables and personal the 2014 Ebola outbreak. protection equipment to seven states. “The support from Shell Companies In addition to donations of critical in Nigeria came at a crucial time. equipment and supplies, SCiN, It enabled NCDC to access medical

Powering the economy the Powering contractors and employees set up free and laboratory supplies and accelerated feeding programmes in isolation centres creation of testing capacity for COVID-19. for COVID-19 infected individuals in We look forward to developing our seven states. The programmes hinged collaboration further, for outbreak preparedness and response.” Shell in NigeriaShell in

46 Shell in Nigeria briefing notes 2021

SHELL COMPANIES IN NIGERIA (SCIN) RESPONDED QUICKLY TO COVID-19 WITH MONEY, MATERIALS AND VOLUNTEERS. INTERVIEW

IT’S NOT JUST Impact Hopes Challenges ABOUT OIL Health for SPDC is about what we It’s not just about oil and gas. It’s about There are many challenges during this do inside the fence and outside the bringing value to people. It’s about being pandemic. We have to work even more

Spill prevention Spill fence. During the pandemic we have able to be a force for good for people closely with all stakeholders on a daily We speak to continued bring valuable health support in your country. This is what I hope basis. We need to continually secure to our people and to the people in will continue. government approvals for production Dr. Akinwumi our communities. to continue and for us to maintain the Fajola, who leads COVID-19 “bubbles” and move our people Approach safely across fields. SPDC’s approach to During COVID-19, the Shell Companies in Nigeria took a strategic decision to

Cohesive communitiesCohesive supporting healthy support Nigeria in fighting the spread of the virus. We boosted the testing WE DO MORE communities capacity of the country. We helped set up molecular laboratories with diagnostic testing machines, with other THAN JUST medical equipment, with ambulances. We also helped disseminate information KEEP OUR OWN through our radio programmes to the Powering the economy the Powering general public. PEOPLE SAFE

DR. AKINWUMI FAJOLA Manager Regional Community Health Shell in NigeriaShell in

47 Shell in Nigeria briefing notes 2021 INTERVIEW

PROVIDING SUSTENANCE Impact Hopes TO HEALTH WORKERS The COVID-19 Feeding Support Our lengthy collaboration with the SPDC AND PATIENTS Programme was novel. The SPDC JV JV is borne out of the fact that we both

Spill prevention Spill provided food to workers and patients want to make life better for communities. in select isolation centres. The support We continue to learn so much and our We speak to gave a human face to the pandemic desire is to continue to work together and reduced the financial burden on and strengthen this collaboration. Dr. Ferdinand patients and the government. Oshonwoh, executive Challenges Approach When the outbreak happened, emphasis director, House of The SPDC JV marshalled this programme, was put on ventilators and other medical

Cohesive communitiesCohesive strengthening clinical governance and suppliers. Food was often overlooked. Renaissance for boosting the morale of frontline workers. Never forget that a sick man must eat We were able to accommodate for if he is to recover. It saves lives. Health Initiative. the dietary variance of patients with underlying medical conditions, delivered timely meal services and introduced a monitoring tool to assess the quality and timeliness of meals. DR. FERDINAND OSHONWOH

Powering the economy the Powering Executive Director, House of Renaissance for Health Initiative

Shell in NigeriaShell in IT SAVES LIVES

48 Shell in Nigeria briefing notes 2021 SPOTLIGHT

FEEDING PROGRAMME IN ISOLATION CENTRES

Spill prevention Spill “As we are working here, we don’t really have time for ourselves and the food goes a long way,” said one of the nurses at the Yaba Isolation Centre in Lagos where Shell collaborated with the NGO Rhoda’s Haven Network on a feeding programme during the COVID-19 pandemic.

SHELL COMPANIES IN NIGERIA AND JOINT VENTURE PARTNERS SUPPORTED FEEDING STATIONS IN SEVEN STATES. Cohesive communitiesCohesive

“The impact of the support has been profound. On an emotional level, the beneficiaries felt cared for and loved amid the uncertainties surrounding their ill health. On the other hand, the provision of daily lunch afforded the beneficiaries

Powering the economy the Powering with a much-needed respite financially,” said Dr. Bowale Abimbola, Medical Director and CEO of the Rhoda’s Haven Network NGO, which partnered with Shell Companies in Nigeria on feeding programmes in isolation centres during

Shell in NigeriaShell in the COVID-19 pandemic.

49 Shell in Nigeria briefing notes 2021

SHELL COMPANIES IN NIGERIA (SCIN) RESPONDED QUICKLY TO COVID-19 WITH MONEY, MATERIALS AND ACTIONS TO PROTECT STAFF, CONTRACTORS, THE COMMUNITIES WHERE WE OPERATE. PROVIDING HUMANITARIAN Since 2018, the Shell Petroleum Shell and SCiN also have relationships ASSISTANCE Development Company of Nigeria joint with Mercy Corps and Family Health venture (SPDC JV) and Shell Nigeria International programmes, which Spill prevention Spill Shell Companies in Nigeria (SCiN) respond Exploration and Production Company have benefited over 70,000 internally $6mln to calls for support for humanitarian (SNEPCo) have committed $6 million displaced persons in north-eastern programmes, such as those providing relief to the government-driven strategic Nigeria. The programmes focus on committed to the government-driven to people displaced by internal conflicts, intervention projects for internally immediate relief and critical support strategic intervention projects for training for emergency workers or helping displaced persons (IDP) in Yobe and Borno related to health, water and sanitation, internally displaced persons communities hit by floods. states in north-eastern Nigeria. By the end education and shelter. of 2019, food, essential hygiene kits and other relief items had been distributed to

Cohesive communitiesCohesive over 5,500 vulnerable households. The SPDC JV also contributed to a project to repair and upgrade of schools, public 5,500 water, toilet facilities and a health-care centre in Yobe State. vulnerable households receive food, essential hygiene kits and other relief items had been distributed to Powering the economy the Powering Shell in NigeriaShell in

50 Shell in Nigeria briefing notes 2021 SPOTLIGHT

REBUILDING HEALTH “This investment has brought smiles to the SERVICES FOR PEOPLE faces of beneficiaries and key stakeholders DISPLACED BY INSURGENCY We particularly appreciate the hands-on

Spill prevention Spill team approach of the project management For many years, the Shell Petroleum team, the guidance provided by them,” Development Company of Nigeria joint said Dr. Hadiza Khamofu, director of venture (SPDC JV) and Shell Nigeria FH1360 Nigeria, the NGO we work with. Exploration and Production Company (SNEPCo) have supported humanitarian The SPDC JV also supported specialised programmes in Nigeria to save lives, health care services for over 3,670 people, especially during crisis and disaster. including 125 people who benefited from

Cohesive communitiesCohesive cataract and general surgery. Towards the end of 2019, reconstruction began on two primary health centres for people made homeless by the insurgency in north-eastern Nigeria. The Fika Primary Health Centre in Yobe State, commissioned in 2020, and a 20-bed health facility in Dikwa Community in Borno State will both

Powering the economy the Powering include solar-powered water facilities.

DR. HADIZA KHAMOFU, DIRECTOR OF FH1360 NIGERIA. Shell in NigeriaShell in

51 Shell in Nigeria briefing notes 2021 AFFORDABLE AND The Shell Petroleum Development QUALITY HEALTH CARE Company of Nigeria joint venture (SPDC JV) and the Shell Nigeria Exploration &

Spill prevention Spill Affordable quality health care improves Production Company (SNEPCo) support life outcomes and strengthens families, 19 health-care centres and signature educational attainment and business intervention projects throughout Nigeria: opportunities. Shell Companies in Nigeria (SCiN) have supported community ■ The Community Health Insurance health programmes in Nigeria since Scheme (CHIS) is a partnership the 1980s that have benefited many between the SPDC JV, Rivers State hundreds of thousands of Nigerians. These Government and local communities. The

Cohesive communitiesCohesive programmes have included equipment and programme improves people’s access pharmaceutical donations, emergency to affordable, quality health care. It care and screening services, hospital costs individuals $27 per year and maintenance and focused interventions on covers about 95% of people’s health HIV/AIDS, malaria, cancer and vision care. care needs. Since inception, more than 75,000 people have been enrolled. Today, SCiN seek to help Nigerian Fourteen thousand individuals enrolled communities increase access to health in 2020.

Powering the economy the Powering services, expand health insurance schemes ■ The Oloibiri Health Programme and strengthen health systems. SCiN (OHP) is a SPDC JV-sponsored local continue to work with key stakeholders government initiative in the Ogbia to achieve greater health coverage by area of Bayelsa State. The initiative increasing access to health and the uptake strengthens local health-care systems of services in the communities. Shell in NigeriaShell in

HEALTHWORKERS AT THE OBIO COTTAGE HOSPITAL IN PORT HARCOURT, NIGERIA. 52 Shell in Nigeria briefing notes 2021 by upgrading and integrating facilities, training and supporting local health-care and community workers and ensuring

Spill prevention Spill a reliable supply of medicines. Since its launch in 2017, the programme has seen a four-fold increase in service utilisation to 3,849 patients in 2020.

■ The Obio Cottage Hospital is a specialist maternity hospital in Port Harcourt supporting families at a crucial moment in their lives. It is funded by the Cohesive communitiesCohesive Community Health Insurance Scheme. It

has specialist pre- and post-natal wards MORE THAN 30,000 BABIES HAVE BEEN SAFELY DELIVERED AT THE OBIO COTTAGE HOSPITAL SINCE 2010. and an operating theatre. Since 2010 nearly 30,000 babies have been safely delivered at the hospital. SUMMARY OF HEALTH IN MOTION STATISTICS IN THE LAST 5 YEARS ■ Health-in-Motion (HIM) is a mobile Communities Blood Blood Treated for Health in motion programmes Beneficiaries Eye care HIV C&T Dental Care Blood Sugar Immunisation Treatment Deworming community health outreach programme reached pressure Cholesterol Malaria

Powering the economy the Powering that takes free medical services to where TOTAL HEALTH IN MOTION 142 14,803 8,150 2,231 6,071 1,0448 3,173 5,040 0 6,907 3,060 1,471 people live and work. Created in the CONDUCTED IN 2016 TOTAL HEALTH IN MOTION 226 28,158 3,123 4,296 7, 4 6 6 1,811 2,840 5,027 605 8,889 8,236 1,332 1980s, around 100,000 people have CONDUCTED IN 2017 benefited from the programme in just TOTAL HEALTH IN MOTION 45 29,920 9,105 5,093 8,440 3,993 3,734 4,964 0 14,346 11,901 2,047 the last five years. Unfortunately, the CONDUCTED IN 2018 TOTAL HEALTH IN MOTION programme was able to reach fewer 32 24,040 10,019 4,286 7, 37 1 2,491 5,002 5,724 0 12,225 10,985 811 CONDUCTED IN 2019

Shell in NigeriaShell in people than normal in 2020 due to TOTAL HEALTH IN MOTION 9 2,603 896 236 786 0 393 570 1857 1,042 960 191 COVID-19 restrictions. CONDUCTED IN 2020

53 Shell in Nigeria briefing notes 2021 SPOTLIGHT

Shell Companies in Nigeria (SCiN) also support a range of specialised health initiatives such as “Vision First”

Spill prevention Spill a programme with Prosight International Eye Foundation.

“If I were to choose just one word to IF I WERE TO describe my feelings towards the Vision First project, it would be: fulfilment! CHOOSE JUST Although the pre-project planning

Cohesive communitiesCohesive and approval phases were long and ONE WORD arduous, the project successes and TO DESCRIBE testimonies of the beneficiaries more than compensate for all the difficulties MY FEELINGS we faced. Together we can improve lives, one eye at a time.” TOWARDS THE

EFEOGHENE ANI VISION FIRST Powering the economy the Powering Consultant Ophthalmic Surgeon PROJECT, IT Prosight International Eye Foundation WOULD BE: FULFILMENT! Shell in NigeriaShell in

54 Shell in Nigeria briefing notes 2021

STEPHEN AND CELINE AMADI HAVE BENEFITED FROM VISION FIRST. INVESTING IN EDUCATION

The Shell Petroleum Development Spill prevention Spill Company of Nigeria joint venture (SPDC SHELL COMPANIES IN NIGERIA HAVE PROVIDED EDUCATION SUPPORT TO THOUSANDS OF NIGERIAN JV) and the Shell Nigeria Exploration CHILDREN OVER MANY YEARS. HERE IS A CLASS IN OTUOGIDI COLLEGE OF HEALTH TECHNOLOGY. & Production Company (SNEPCo) have offered thousands of Nigerian children, supported thousands of students many university. This may be a small contribution mostly from poor families in the Niger of whom are among Nigeria’s business, against the overall challenge, but every Delta, the opportunity to achieve a political and social leaders. child that benefits represents a family and quality education for free. a community. 9,500 In 2020, the SPDC JV and SNEPCo

Cohesive communitiesCohesive Nigeria faces enormous socio-economic invested $7.7 million in scholarships. Since Lack of world-class research institutions secondary school grants since 2011 challenges with one in every five of the 2011, the schemes have awarded more and limited access to technology are key world’s out-of-school children – around than 9,500 secondary school grants and challenges in enabling Nigerians to play 10.5 million. While primary education around 6,000 university grants to students. an even greater role in the oil and gas is free in Nigeria, there are few free Of these students, more than 1,200 have sector. Shell Companies in Nigeria (SCiN) secondary schools. Most Nigerians benefited from the SPDC JV and SNEPCo’s invest in advancing education through simply cannot afford to educate their Cradle-to-Career (C2C) programme. university scholarships, student exchange 6,000 children beyond basic learning. programmes and focused research. More

Powering the economy the Powering Students completing the C2C scheme than 30,000 students applied for around university grants since 2011 Many parents – aspirational for their have access to scholarships at top- 500 university scholarships in 2020 – the children and unable to afford school fees quality private schools and then receive highest number of applicants in the 10-year – depend on scholarships from companies support through the University Scholarship history of the annual programme. and benefactors. Since the 1950s, scheme. This support is dependent on the Shell scholarship schemes have them securing admission to a Nigerian Shell in NigeriaShell in

55 Shell in Nigeria briefing notes 2021 For over 40 years, SCiN have also offered an annual sabbatical programme and research internship for Nigerian

Spill prevention Spill academics. In 2020, 31 Nigerians joined the programme – the highest number of participants in its history. The programmes provide Shell with specialised services, while the professors and senior lecturers acquire industry experience and exposure to new technologies that can be introduced into the university curriculum. Cohesive communitiesCohesive The SPDC JV also established the Shell

CRADLE-TO-CAREER SCHOLARSHIPS COVER THE FULL COST OF TUITION, Niger Delta Postgraduate Scholarship TRAVEL, ACCOMMODATION, UNIFORMS, BOOKS AND LAPTOPS. programme about 10 years ago which offers one-year scholarships to three UK universities for studies related to the oil and gas industry.

Powering the economy the Powering In addition to this, in 2018 the SPDC JV established the Centre of Excellence in Marine Engineering and Offshore Technology at the Rivers State University. In 2020, 10 pioneer students from the centre graduated. Shell in NigeriaShell in

56 Shell in Nigeria briefing notes 2021 SPOTLIGHT SPOTLIGHT

CRADLE-TO-CAREER SPDC JV UNIVERSITY “My parents are civil servants with meagre SCHOLARSHIPS SCHOLARSHIPS earnings. I knew I had to work hard to support my family. Getting the SPDC JV

Spill prevention Spill The Cradle-to-Career (C2C) scholarship “My father is a pensioner and a farmer. scholarship in my first year was a relief to programme pays for children from rural, My mother is a trader. The financial my parents. The financial support helped Find out more and watch our often poor, communities to attend some burden for medical studies was too heavy me sponsor my studies and gave me the graduate interviews here: of Nigeria’s top secondary schools. The a financial burden for my parents. Then I confidence to pursue my dreams. I am SPDC JV has awarded a cumulative 653 got the SPDC JV Scholarship. I have been the current president of the Women in youtu.be/OfUNrTSIQ8I C2C scholarships in the Niger Delta able to buy textbooks I could only dream Technology Africa chapter, where we try since it started in 2010. In 2014, SNEPCo of having. This experience is something to breach the gender divide in technology.” began offering these scholarships to that has forever changed my life and I am

Cohesive communitiesCohesive applicants across the country, and so far, proud to be a Shell Scholar.” AYOBAMI E. OLANREWAJU 548 students have benefited. In total since MSIT, Carnegie Mellon University, 2010, more than 1,200 students have JOSEPH OGHENEOCHUKO GBOGBO Africa received C2C scholarships. Medicine and Surgery, University of Maiduguri C2C scholarships cover the full cost of tuition, travel, accommodation, uniforms, books and laptops. Students completing

Powering the economy the Powering the C2C secondary school scheme also receive support through the University Scholarship scheme. This support is dependent on them securing admission to a Nigerian university. Shell in NigeriaShell in

57 Shell in Nigeria briefing notes 2021 SPOTLIGHT

SUPPORTING ENTERPRISE In 2014, the Shell Petroleum Development Every year Shell LiveWIRE supports AND ENTREPRENEURSHIP Company of Nigeria joint venture (SPDC thousands of individuals to access the JV) extended LiveWIRE to Ogoniland knowledge, skills, networks and resources

Spill prevention Spill Aspiration, innovation and despite the joint venture no longer to turn their business ideas into successful entrepreneurship are drivers of economic producing oil and gas in the area. The enterprises which provide a sustainable growth and Shell Companies in Nigeria aim was to help raise living standards and income, create jobs and drive innovation. (SCiN) work to improve the chances for reduce crude oil theft in the area through The purpose of LiveWIRE is to improve Nigerians to achieve their ambitions. the promotion of sustainable alternative opportunities for young people to realise SCiN provide access to loans to small livelihoods. This was in line with one of their potential through the creation and and medium businesses which could the recommendations of the 2011 United development of their own businesses. Such become suppliers and contractors. Shell Nations Environment Programme (UNEP) businesses will contribute towards a more

Cohesive communitiesCohesive has also brought its flagship LiveWIRE Report for the restoration of the Ogoni buoyant economy and communities with youth enterprise development programme environment. more fulfilled young people. to Nigeria. In 2019, the Ogoniland programme gave LiveWIRE was launched in Nigeria in way to a livelihood programme led and 2003 and provides training and finance to executed by the Hydrocarbon Pollution young people between the ages of 18 and Remediation Project (HYPREP), an agency 35 to start or expand their own businesses. established by the federal government and

Powering the economy the Powering In 2020, 220 people benefited from the to which the SPDC JV contributes funds. LiveWIRE programme, receiving training in The programme will train 1,200 Ogoni enterprise development and management, women in various skills. Click on this link to read about some of as well as business start-up grants. Almost the entrepreneurs who have benefited 1,100 Nigerian young people have so far In 2020, HYPREP completed the training from the programme. been trained under the programme and of 400 Ogoni women in a range of

Shell in NigeriaShell in more than 1,000 young entrepreneurs agribusinesses, including feed and crop ng.livewire.shell/case-studies.html were provided with business grants. production, poultry and fish farming.

58 Shell in Nigeria briefing notes 2021 INTERVIEW

SUCCESS IS MY ONLY Impact Hopes Challenges OPTION AND IT COMES Going through the LiveWIRE Programme, The impact of my business on the people Business is doing well but we need BY SOLVING PROBLEMS I was able to strategise. I gave my business around me cannot be over emphasised, to find ways to get more products

Spill prevention Spill a name and registered it. The financial especially in our pandemic-challenged to more customers and so we must raise support I got from the programme helped world. A lot of people in my community are funds for more bikes. This will help us We speak to me rent premises and increase production now jobless but I have been able to create expand even further. so my sales have risen. 26 jobs and I hope to grow enough to Ogbokuma create even more. Ilodeipe, who helps Approach By being exposed to business knowledge local farmers process and meeting other determined

Cohesive communitiesCohesive entrepreneurs, I realised that success was and package their my only option and that success comes by finding solutions to problems. During THE IMPACT ON products lockdown, I realised that I needed to offer a courier service to my customers and PEOPLE AROUND so I used some of the LiveWIRE grant to buy a bike to make deliveries. ME CANNOT BE Powering the economy the Powering OVER EMPHASISED

OGBOKUMA ILODEIPE

Shell in NigeriaShell in Chief Executive Officer

59 Shell in Nigeria briefing notes 2021 SPILL PREVENTION Spill prevention Spill

The Niger Delta – a region of forest, farmland, rivers and marshes – is home to around 40 million people and where the Shell Petroleum Development Company of Nigeria Limited (SPDC)10 operates a network of oil and gas,

Cohesive communities wells and pipelines on behalf of the SPDC Joint Venture (SPDC JV)11. PREVENTING Powering the economy the Powering SPILLS IN THE

1Unless otherwise stated, all activities reported for or as relating to Shell Petroleum Development Company Limited (SPDC) in this section should be understood as SPDC acting as the operator of Shell in NigeriaShell in NIGER DELTA the SPDC joint venture (SPDC JV). 2SPDC, as the corporate entity, owns 30% of the JV and is also operator. The other partners are the government-owned Nigerian National Petroleum Corporation NNPC (NNPC, 55% share), 60 Shell in Nigeria briefing notes 2021 Total E&P Nigeria Ltd (10%) and the ENI subsidiary Agip Oil Company Limited (5%).

NO SPILL IS ACCEPTABLE. SPDC JV WORKS HARD TO PREVENT THEM. Operational spills fall to Lowest total spill volume in NO SPILL IS ACCEPTABLE 11 in 2020 VS. 7in 2019

Spill prevention Spill AND THE SPDC JV WORKS 10 HARD TO PREVENT THEM years

Most often the oil and gas are delivered Sabotage-related spills in 2020 vs safely to domestic and international 156 in 2019 customers without problem thanks to a 122 Cohesive communities dedicated focus on operational excellence, 180 spill prevention and, if necessary, Sites remediated in responding quickly to any spill. Today, 2019 & 2020 the total spilled volume of crude oil is the lowest for at least 10 years. Spills from the SPDC JV operations, activities and assets are now uncommon and, as operator, SPDC operates to the same technical

Powering the economy the Powering standards as Shell companies globally. Illegal activities and their legacy continue to require additional work, security and

engagement with local communities. The Nigeria Briefing Notes update on activities and programmes undertaken by several Nigerian companies either wholly owned by Shell or in which Shell has an interest. Together, three of these are referred to as the Shell Companies in Nigeria (SCiN).

Shell Petroleum Development Company of Nigeria Limited (SPDC); a wholly-owned Shell subsidiary, which operates an unincorporated joint venture (SPDC JV) in which SPDC holds a 30% interest.

Shell in NigeriaShell in Two other wholly-owned Shell subsidiaries; Shell Nigeria Exploration and Production Company Limited (SNEPCo) and Shell Nigeria Gas Limited (SNG).

The fourth is Nigeria Liquefied Natural Gas (NLNG) Limited; an incorporated joint venture in which Shell B.V. has a 25.6% interest. 61 Shell in Nigeria briefing notes 2021 PREVENTING ■ The joint venture has also implemented ILLEGAL ACTIVITIES anti-theft protection mechanisms, such as anti-tamper locks and steel cages

Spill prevention Spill The SPDC JV is committed to minimising the for wellheads. Around 364 cages have impact of third-party incidents and spills. been installed so far and around 224 The joint venture works with government more are planned for 2021/2022 that agencies, non-governmental organisations will all come with CCTV technology. and communities to pro-actively minimise In 2020, 15 breaches of the cages spills from illegal activity. This work includes: were recorded out of 1,706 attempts. As a result, wellhead-related losses ■ Using simplified zonal pipeline maps significantly dropped from about 30 Prevention

Cohesive communities to enhance targeted response to third- kb/d in 2016 to less than 1 kb/d in party interference and prevent incidents 2020 across all SPDC operations. from occurring. Since 2017, SPDC has ■ SPDC has also implemented several also been able to remove more than 689 ANTI-TAMPER COMMUNITY WELLHEAD initiatives and partnerships to raise NEW PIPELINE. LOCKS. LIAISON. CAGES. SURVEILLANCE. illegal theft points. Illegal theft points are awareness of the negative impact of identified by daily inspections from the crude oil theft and illegal oil refining. Clean up air and on the ground. Examples include community-based pipeline surveillance, radio jingles and Powering the economy the Powering

the promotion of alternative livelihoods SPILL RESPONSE REMEDIATED WILDLIFE through Shell’s youth entrepreneurship WORKERS. SITE. RETURNS. programme, Shell LiveWIRE. Causation Shell in NigeriaShell in

ILLEGAL ILLEGAL 62 Shell in Nigeria briefing notes 2021 CONNECTIONS. REFINERIES. UNITED NATIONS REPORT In 2011, the United Nations Environmental AND THE CLEAN-UP IN Programme (UNEP) published a report on OGONILAND Ogoniland and made recommendations

Spill prevention Spill to all stakeholders – the SPDC JV, the Ogoniland – a region of six kingdoms government and communities. The in the southern Niger Delta – had oil UNEP report said that the environmental operations for decades and unfortunately restoration of Ogoniland was possible has a history of pollution from oil spills, but that it could take up to 30 years. including some, regrettably, from SPDC JV Ten years into that programme, progress is operations. Today, the region is one of the being made in governance, funding A SHORELINE CLEAN-UP AND ASSESSMENT TECHNIQUE (SCAT) TEAM INSPECT A CREEK. centres of illegal refining and suffers from and clean-up activities.

Cohesive communities resulting re-pollution as well as issues from historical spills. Ogoniland clean-up activities required and has so far made a $360 million In its report, UNEP made the federal government of Nigeria contribution required by the current stage recommendations that were addressed The SPDC JV has produced neither oil to establish an organisation to lead, of the programme. Other payments are specifically to SPDC as operator of nor gas in Ogoniland since 1993 and co-ordinate and assure the various on track. Funding was not required to be the joint venture. SPDC has acted on has transferred operatorship of its assets activities. In 2017, the Hydrocarbon released in 2020 but has been set aside all, and completed most, of the UNEP in Ogoniland to the Nigerian Petroleum Pollution and Remediation Project ready for when it is needed by HYPREP. recommendations addressed specifically Development Company (NPDC). However, (HYPREP) agency was created. to it as operator of the joint venture.

Powering the economy the Powering the Trans Nigeria Pipeline (TNP), which SPDC representatives offer some In 2018, HYPREP awarded contracts for However, there are recommendations belongs to the SPDC JV and carries crude advice, alongside other oil and gas the first set of remediation projects. In that require multi-stakeholder efforts oil from various companies, passes through representatives, but have no control 2019, contractors started operations on coordinated by HYPREP. Ogoniland. SPDC, as the operator, responds over this independent organisation. 21 lots which add up to 12 of the 67 sites to any operational incident that may occur originally recorded in the UNEP report. on the TNP as well as sabotage and theft UNEP recommended that a $1 billion trust Two of the 67 sites are waste sites without

Shell in NigeriaShell in incidents on its assets in the region. be established to fund the restoration hydrocarbon pollution. In January 2020, of Ogoniland. The SPDC JV agreed HYPREP awarded a further 29 contracts to contribute $900 million to this fund for remediation on 29 lots covering eight 63 Shell in Nigeria briefing notes 2021 polluted sites. SPOTLIGHT

SPDC JV ACTIONS ON UNEP ■ Collaborated with the Rivers State RECOMMENDATIONS government to deliver water to impacted communities and built water facilities,

Spill prevention Spill Actions on the recommendations which are expected to be upgraded as addressed specifically to SPDC as part of HYPREP’s planned activities. For spills reports and incident data visit: operator of the joint venture: ■ Trained contractors on clean-up and shell.com.ng/sustainability/environment/oil-spills.html remediation techniques and assigned ■ Reassessed 15 SPDC JV sites mentioned specialist supervisors to a number of in the UNEP report and remediated project sites to ensure effective oversight further where required with the sites and compliance. certified by government regulators.

Cohesive communities ■ Continuing to carry out regular aerial ■ Completed an inventory and monitoring of the JV’s pipelines to physical verification of assets for identify new incidents or activities (such decommissioning and working with as theft and sabotage) which may result joint venture partners and the federal in environmental damage. government of Nigeria to develop a decommissioning plan for these assets. ■ Providing improved public access to information such as Joint Investigation ■ Completed a comprehensive review Visit reports and spill incident data via Powering the economy the Powering of its oil spill response and remediation a spills information website. techniques and made a number of improvements in line with industry best practices. Shell in NigeriaShell in

64 Shell in Nigeria briefing notes 2021 INTERVIEW

BODO CLEAN-UP Impact Hopes TECHNIQUES COULD Our nine-year relationship has made Without doubt, we see that the technology BE REPLICATED ACROSS a positive impact on human capital being used at Bodo creek can be

Spill prevention Spill NIGER DELTA development, and asset and environmental replicated elsewhere in the Niger Delta. restoration. The technologies and Our work helps us to learn how to execute techniques being used in the Bodo complex projects sustainably. We speak with Creek clean-up are yielding results unprecedented in similar projects globally. Challenges Lesi Maol, whose The mud flats with the possibility of sink indigenous Giolee Approach holes raises serious health and safety SPDC’s approach to project and contract issues. This and the impact of COVID- Cohesive communities Global Resources management is sustainable and inclusive. 19’s ‘new normal’ requires us to focus on We are also using innovations and hi- managing the large community workforce. is contracted to the tech ideas like modified bio-sparging and SPDC JV to clean up multiple injection systems. the creeks. Powering the economy the Powering THE TECHNOLOGIES LESI MAOL AND TECHNIQUES ARE Executive Director

Shell in NigeriaShell in YIELDING RESULTS

65 Shell in Nigeria briefing notes 2021 MAKING PROGRESS IN CLEANING UP RECENT SPILLS

BODO

Spill prevention Spill The vast majority of spills are caused by sabotage. A small number are linked to regrettable operational issues. Whatever the cause, the Shell Petroleum BONNY Development Company of Nigeria Limited (SPDC) acts quickly, as operator, to reduce the volume of crude spilled and to clean up. Cleaned and remediated sites are

Cohesive communities certified by the government.

Over the past five years the SPDC JV has cleaned up 464 spills sites and the government has certified 390 of these. This challenging work quickly stops the flow of oil, clears surface oil and seeks to remediate soil and waterways. In 2019, Confirmed by SCAT* as meeting

Powering the economy the Powering the joint venture successfully remediated the observational requirements for 130 sites (123 certified), a record year of Phase 2 activity, and planned to extend this into 2020. Unfortunately, working restrictions Ready for SCAT* review to prevent the spread of COVID-19 reduced remediation in 2020 to 50 sites

Shell in NigeriaShell in (31 certified). *Shoreline Clean-up and Assessment Technique

66 Shell in Nigeria briefing notes 2021 In 2021, the SPDC JV plans accelerated CLEAN-UP IN BODO to end by mid-2021, but the project was The clean-up consists of three phases: action to catch up, aiming to complete up shut down for about seven months due Eight hundred community workers have to four sites per week and remediating over SPDC continues to work with the Bodo to COVID-19 restrictions. Phase two’s been medically checked, assessed for their

Spill prevention Spill 150 sites in total. This concerted effort has community and others to clean up areas remediation is now expected to be swimming ability to ensure they can safely dedicated budget and 300 contractors affected by two operational spills in completed in 2023. respond to incidents in rivers and creeks, assigned to the work. Extra soil nutrients 2008. In 2015, the SPDC JV and the and trained to International Maritime and dedicated follow up for certification Bodo community signed a Memorandum Organisation oil spill response Levels will help achieve this stretch target. The of Understanding granting SPDC, as one and two. The clean-up will only be Nigerian National Oil Spill Detection and operator, access to start cleaning up the successful if the repeated recontamination Response Agency (NOSDRA) has opened affected areas. 1 Removal of free of cleaned-up sites from illegal third-party a laboratory in Port Harcourt to help phase surface oil activity stops.

Cohesive communities accelerate checks for certification. The clean-up process is overseen by an independent body called the Bodo SPDC, as operator, also continues to work Mediation Initiative. Two contractors were with the Bodo community in Gokhana, an selected to conduct the clean-up overseen Ogoniland kingdom, and others to clean by an independent project director. The 2 Remediation up areas affected by two operational spills clean-up project initially suffered delays of soil in 2008. This clean up activity is outside due to difficulties accessing the sites. the remit of HYPREP.

Powering the economy the Powering The first phase of the clean-up, removal of free phase surface oil, was completed in August 2018, and the contract Planting of mangroves 3 procurement process for phase two; and monitoring remediation of soil, was completed in 2019. Remediation activities in the field started

Shell in NigeriaShell in in November 2019 and were expected

67 Shell in Nigeria briefing notes 2021 BODO MEDIATION INITIATIVE

Spill prevention Spill 1 2 3

Remove surface oil Remediation Planting and monitoring 2015–2018 2018–2023 2021–2028

Cohesive communities Extended due to Covid-19 restrictions Likely extended due to Covid-19 lost time

■ MOU granting SPDC, as operator, ■ Six contractors selected to complete ■ Planting access to begin the clean-up the remediation ■ Monitoring by ground surveys ■ Two contractors selected to ■ 800 community workers trained to ■ Monitoring by sensing perform the clean up International Marine Organisation oil spill response levels one and two ■ Shoreline Clean-up Assessment

Powering the economy the Powering Technique begins (ongoing) ■ Field remediation activities begin (Nov ‘19) ■ Sub-surface geological survey completed ■ Birds, fish and crustations returning to the creeks (tested to identify potential ■ Removal of surface oil completed health risks) Shell in NigeriaShell in

68 Shell in Nigeria briefing notes 2021 INTERVIEW THE ENVIRONMENT CLEANING UP BODO Impact Almost 3,000 young men and women IS RECOVERING AS in the Bodo community area will gain

Spill prevention Spill We speak with meaningful employment by working on REMEDIATION WORK cleaning up the sites across the life cycle Vincent Nwabueze, of the project. This has significantly the man leading the improved their social standing in the PROGRESSES community. With regard to nature, SPDC JV’s Ogoni mangroves are recovering, birds are returning and we have fish in the creeks. VINCENT NWABUEZE Restoration Project In the markets of Bodo, all kinds of fish, Hopes Ogoni Restoration

Cohesive communities periwinkles and crabs are on sale. The I want to be able to say that we have Project Manager environment is recovering. successfully cleaned the creek and returned it to a state where it will benefit Approach generations to come. Our local contractors use internationally recognised remediation techniques, which Challenges are good for the environment to ensure the Illegal activities are still happening. These clean-up is sustainable. We work hard to actions are polluting the environment. The

Powering the economy the Powering get buy-in from all stakeholders. We are Niger Delta is a network of waterways. constantly liaising with government security What happens in one area of the water forces and regulatory agencies to help will end up in another area. If the illegal prevent illegal activities. activities don’t stop we are risking the Bodo clean-up being an action in futility. Security is a big challenge. Shell in NigeriaShell in

69 Shell in Nigeria briefing notes 2021 SPOTLIGHT

USING BACTERIA TO CLEAN One such technique is bioremediation, Bioremediation has wider positive impacts, UP OIL SPILLS which puts live bacteria to work to remove for example in developing local expertise contaminants, pollutants and toxins from in these specialist techniques.

Spill prevention Spill The Shell Petroleum Development the soil and water. Company of Nigeria joint venture (SPDC The SPDC JV uses bioremediation JV) uses techniques to clean up oil that These organisms ‘eat’ the carbon-rich oil along with other technologies where are believed to be the best for the soil and spills, using it for energy and, ultimately, appropriate. All the SPDC JV’s remediation climate conditions of the hot and humid leading to its removal. However, the practices are aimed to be compliant Niger Delta. bacteria used in this bioremediation with the Environmental Guidelines and process need oxygen to survive. This Standards for the Petroleum Industry in makes it hard for them to work in layers Nigeria (EGASPIN).

Cohesive communities of mud or under water.

To get around this problem, the SPDC JV uses a technique known as bio-sparging to help the bacteria survive where there is not enough natural oxygen. Bio-sparging sends the bacteria into the deeper layers with their own supply of compressed air

Powering the economy the Powering and water, giving them a direct supply of oxygen for their work. This process is done without disrupting the surrounding soil or water. Shell in NigeriaShell in

70 Shell in Nigeria briefing notes 2021

A TEAM OF WORKERS CLEANING A CREEK. Up to date information such as Joint TODAY OPERATIONAL The SPDC JV apologises for these spills Investigation Visit reports and spill SPILLS ARE UNCOMMON and recognises there is still work to do to incident data can be viewed at: end operational spills completely. SPDC

Spill prevention Spill There were 11 operational spills over 100 believes this is possible if it can continue https://www.shell.com.ng/sustainability/ kilograms in 2020 compared with over to improve its performance in the areas environment/oil-spills.html 60 in 2011 and the SPDC JV has reduced where it has control. To reduce the number the average volume of spilled oil in each of operational spills in Nigeria, the SPDC incident by nearly 80% in the last decade. JV is focused on implementing its ongoing In 2020, the SPDC JV had four more work programme to appraise, maintain operational spills than 2019, but the spill and replace key sections of pipelines volumes were lower year-on-year. and flow lines. Cohesive communities Over the past 10 years, the total SPDC has completed more than 1,330 number and volume of oil spills from kilometres of new pipelines over the last 10 operations in the Niger Delta have been years. This is organised through a pipeline significantly reduced.Operational spills and flow line integrity management system have been significantly fewer since 2016 that pro-actively addresses pipeline and the Shell Petroleum Development integrity. It puts barriers in place where Company of Nigeria Limited (SPDC) necessary and recommends when and

Powering the economy the Powering believes it is possible to have zero where pipeline sections should be replaced spills, but there are still occasions when to prevent failures. In 2018, this integrity accidental spills occur. management system was enhanced to manage threats arising from frequent pipeline sabotage or vandalism. Shell in NigeriaShell in

SPDC JV REMEDIATION AND OIL SPILL RESPONSE TEAM ARE ALWAYS READY TO RESPOND.

71 Shell in Nigeria briefing notes 2021 72 Shell in Nigeria Powering the economy Cohesive communities Spill prevention Shell in Nigeria briefing notes 2021 notes briefing Nigeria in Shell spills Operational SPDC JVSPILLS Volume (thousand tonnes) 0 4 6 5 2 3 1 2011 Number 2012 2013 2014 Volume 2015 2016 2017 2018 2019 2020 0 10 20 30 40 50 60 70

Number Sabotage spills Volume (thousand tonnes) 0 4 6 7 5 2 3 1 2011 Number 2012 2013 2014 Volume 2015 2016 2017 2018 2019 2020 0 20 40 60 80 100 120 140 160 180

Number INTERVIEW

PIPELINES ARE OUR Impact Hopes Challenges LIFEBLOOD The lifeblood of the SPDC JV is the Maintaining the availability of pipelines We meet a wide range of community pipeline. Over the last 10 years we have through routine maintenance and views and needs. It is not as simple as

Spill prevention Spill demonstrated a significant reduction in inspection is a priority. With our new turning up to maintain our pipeline. We speak to time to repair leaks. Availability of our corrosion management framework we can Community support and trust is essential. main pipelines has been 100% in the last forecast corrosion rates and ensure the The security of my team is crucial. I only Christopher Griffiths, two years. Against the backdrop of a maintenance activity happens before a sleep at night knowing that they are out the man who keeps challenging environment, this delivers pipeline fails. there trying to do the right thing and are a positive message. adequately supported. the pipelines flowing Approach

Cohesive communities for SPDC. The team have a forward-looking plan from which they can deliver. They can mitigate key threats, make choices and prioritise the work. So, for 2021, I know exactly what we need to do. This level of granularity means we can maintain our lines far better than we have done YOU HAVE TO in the past. Powering the economy the Powering ENGAGE THE TRUST OF THE COMMUNITY

Shell in NigeriaShell in CHRISTOPHER GRIFFITHS SPDC Pipelines Manager

73 Shell in Nigeria briefing notes 2021 FASTER RESPONSE, The SPDC JV’s average time to complete the FASTER CLEAN-UP recovery of surface oil has more than halved Up to date information such as Joint from 13 days in 2016 to five days in 2020. Investigation Visit reports and spill

Spill prevention Spill The Shell Petroleum Development Closer engagement with communities incident data can be viewed at: Company of Nigeria joint venture (SPDC has helped SPDC to access spill locations JV) is committed to cleaning up all oil spills more quickly, meaning on average that https://www.shell.com.ng/sustainability/ related to its assets and infrastructure, joint investigations into the cause of a spill environment/oil-spills.html regardless of the cause. The Shell now commence within two days in 2020 Petroleum Development Company of compared to six days in 2016. Nigeria Limited (SPDC), as operator, is having success in responding faster and Today, SPDC’s frontline spill response When a leak is identified, production is

Cohesive communities cleaning-up faster but needs support teams are able to respond faster than suspended, and efforts made to contain any from government agencies to prevent re- ever to spills and they have significantly spilled oil. The SPDC JV regularly tests its

pollution caused by sabotage and illegal reduced cleaning up times. This has emergency spill response procedures and SPDC JV HAVE MORE THAN HALVED THE AVERAGE refining. been achieved by improving our practices capability to ensure staff and contractors TIME TO COMPLETE RECOVERY OF SURFACE OIL. and by forging partnerships with local can respond rapidly to an incident. Today, SPDC’s operational response and communities and contractors in the region. repair is prompt and spill volumes are These relationships have helped the SPDC In line with government regulations, Once the clean-up and remediation is reduced on average by nearly 80% JV respond faster to spill incidents, some a Joint Investigation Visit (JIV) team visits completed, the work is inspected and,

Powering the economy the Powering in the last decade. of which occur in hard-to-reach areas the spill site to establish the cause and if satisfactory, approved and certified where security is at risk and the support volume of oil spilled. The team comprises by Nigerian government regulators. of communities is necessary. representatives from the SPDC JV, regulators, government security agencies, state governments and communities. Shell in NigeriaShell in

74 Shell in Nigeria briefing notes 2021 INTERVIEW

CLOSE COLLABORATION Impact WITH THE IUCN IN THE A conservation organisation and an oil IT CAN BE PART NIGER DELTA company are not natural bedfellows. But

Spill prevention Spill we have worked together to find some technical solutions to a difficult issue. OF A LARGER We speak to We’re instituting an advisory group, which is made up of both Nigerian SOLUTION Rachel Asante, expert and international scientists, and which in biodiversity from the is working with SPDC to ensure that remediation standards are best practice. International Union for RACHEL ASANTE Cohesive communities Approach Union for the Conservation of Nature the Conservation of The SPDC JV approached the IUCN This project can contribute to what needs about getting some support in areas to be done in the Niger Delta. It’s not a Nature (IUCN) of remediation and biodiversity recovery. panacea that will solve all the problems It’s been a fruitful collaboration and of oil spills in the Niger Delta, but I hope we have managed to build trust. it can be part of a larger solution. We have learned from SPDC colleagues and they have learned from us. We’ve Challenges

Powering the economy the Powering managed to come to a common Every project has been impacted by understanding which is critical. COVID-19. We’ve had to put the brakes on a little in getting into the field and Hopes implementing the assessments that We are monitoring the spill sites but we’re we want to do. Accessibility is also a also monitoring reference sites so that we challenge. Some of those spill sites are not

Shell in NigeriaShell in RACHEL ASANTE (RIGHT) IN THE FIELD can establish an environmental baseline. accessible or are in places where there are WITH SPDC JV’S CHINYERE OZUMBA. security concerns.

75 Shell in Nigeria briefing notes 2021 COUNTERING SPILLS Sabotage incidents often occur in anti-theft protection mechanisms, such All societies have criminals motivated by CAUSED BY SABOTAGE remote areas of the Niger Delta where as anti-tamper locks and steel cages for self-interest but poverty and the inability to access is difficult. The SPDC JV works wellheads. By the end of 2020, 364 cages access alternative livelihoods contributes

Spill prevention Spill The vast majority of oil spills in the Niger closely with government agencies, have been installed including 73 cages to third-party incidents. Shell Companies Delta continue to be caused by crude non-governmental organisations and upgraded with CCTV. Around 224 more in Nigeria (SCiN) and their joint venture oil theft or the sabotage of pipelines, communities to pro-actively minimise are planned the next two years. partners have made voluntary social as well as illegal oil refining. While the spills from illegal activity. This involves investments of between $40 million and Shell Petroleum Development Company using simplified zonal pipeline maps to In 2020, 15 breaches of the cages were $50 million annually over the last five of Nigeria joint venture (SPDC JV) has no enhance targeted response and prevent recorded out of 1,706 attempts. As a years to help improve the lives of millions authority to prevent illegal oil refineries, incidents from occurring. result, well head-related losses significantly of Nigerians. A large portion of this social it is committed to preventing attacks and dropped from about 30 kb/d in 2016 to investment is made in the Niger Delta

Cohesive communities breaches of its pipelines and well heads. The use of new surveillance less than 1 kb/d in 2020 across all SPDC through programmes which are driven by In 2020, 92% of oil spills were caused by equipment, regular overflights, JV operations. local communities. sabotage and theft – similar on-the-ground inspections and to previous years. anti-theft protection mechanisms all also contribute to discouraging The challenge of preventing spills crude oil theft. relating to sabotage and theft by third parties remains. In 2020, there were Since 2016, the Shell Petroleum

Powering the economy the Powering 122 sabotage-related spills over 100 Development Company of Nigeria kilograms, down from 156 in 2019. Thanks Limited (SPDC), as operator, has to preventive efforts, spilled volumes from also been able to remove more illegal activities were around 1,400 tonnes than 720 illegal theft points. Illegal of crude in 2020, compared with over theft points are identified by regular 2,300 tonnes in 2019 and over 4,000 inspections from the air and on the

Shell in NigeriaShell in tonnes five year ago. ground. SPDC has also implemented

76 Shell in Nigeria briefing notes 2021 BY THE END OF 2020, 364 CAGES HAD BEEN INSTALLED. INTERVIEW

AT THE FRONTLINE OF THE Impact Hopes NIGER DELTA I get the most pride and satisfaction when We work as a team to protect the I see that the leak has stopped and the environment. If we protect it, we make

Spill prevention Spill leak site is clean. Then some time later, it safe for generations to come, to enjoy We speak to Chima I’ll return and see that the restoration it and to live comfortably on it. process is ongoing, that I’ve been able Nicholas Agomuo, to take care of that. Challenges a frontline spills The response team is the first line of Approach response activity. It is a collective effort, responder We work to stop the free flow of the spill not a sole responsibility. You have team and reduce it as much as possible to members that are there any time you call

Cohesive communities reduce the impact on the environment. them to support the response activity. We work as a team and this makes it so much easier and faster to do what we do.

Powering the economy the Powering WE WORK AS A TEAM

Shell in NigeriaShell in CHIMA NICHOLAS AGOMUO Spills Responder

77 Shell in Nigeria briefing notes 2021 RECOGNITION 2020 2019 2018 AND AWARDS Dr. Chikwe Ihekweazu, Director General Jobberman report names Shell Companies Sustainability Enterprise and Responsibility at The Nigeria Centre for Disease Control in Nigeria the “Best Company to Work Awards (SERAs): Shell Companies in Nigeria

Spill prevention Spill Shell Companies in Nigeria have received (NCDC)’s commended SCiN for their For”. Shell led the pack of top 100 awarded “Best in Climate Action” for the numerous awards in recognition of their critical support to the country’s response companies that respondents admire, Afam VI Power Plant. contribution to the country’s social and activities to COVID-19, as they did during respect and desire to work for the most. economic development. Among these are: the 2014 Ebola outbreak. SNEPCo was named the “Best Nigerian Petroleum Technology Association of Oil and Gas Company in Technology and “The support from Shell Companies in Nigeria (PETAN) awards Shell Companies Innovation” at the Nigerian International Nigeria came at a crucial time. It enabled in Nigeria “Local Content Operator of Petroleum Summit (NIPS). SNEPCo won the NCDC to access medical and laboratory the Year” at the 2019 Annual Oil Industry award for pioneering in-country subsea tree

Cohesive communities supplies and accelerated creation of testing Achievement Awards. refurbishment. This was the first time in the capacity for COVID-19. We look forward Nigerian oil and gas industry that a subsea to developing our collaboration further, for SPDC won the 2019 Nigeria Oil and tree was fully stripped down and refurbished outbreak preparedness and response.” Gas Conference (NOG) Excellence locally with its original functionality restored. Award presented to a member of the Nigerian Oil and Gas value chain with Petroleum Technology Association of Nigeria the most positive commercial or technical (PETAN) names SPDC “Local Content contribution to the industry. Operator of the Year”, marking the third

Powering the economy the Powering time Shell Companies in Nigeria have won the PETAN award.

Shell Companies in Nigeria were also awarded the “Best Performing International Company in Technology and Innovation”

Shell in NigeriaShell in at the first Nigeria International Petroleum Summit, which included recognition of their role in local capacity development and 78 Shell in Nigeria briefing notes 2021 Nigerian content. OUR PERFORMANCE DATA

2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Spill prevention Spill

FLARING OF ASSOCIATED FROM SPDC JV AND SNEPCO OPERATIONS FLARING (UPSTREAM) (MILLION TONNES HYDROCARBON FLARED)

NIGERIA [A] [F] 0.6 0.7 0.6 0.8 0.5 0.9 1.2 1.2 1.5 2.0

OIL SPILLS AND DISCHARGES FROM SPDC JV AND SNEPCO OPERATIONS [B] [C] [D]

SABOTAGE SPILLS – VOLUME 1.4 2.3 1.8 1.4 4.0 2.3 2.7 2.4 6.6 1.6 (THOUSAND TONNES) Cohesive communities SABOTAGE SPILLS – NUMBER [F] 122 156 109 62 48 94 139 157 138 118

OPERATIONAL SPILLS – VOLUME 0.02 0.03 0.4 0.1 0.3 0.2 0.3 0.4 0.2 5.2 (THOUSAND TONNES) [D] [F]

OPERATIONAL SPILLS – NUMBER [E] [F] 11 7 15 10 8 17 40 31 37 65

Powering the economy the Powering A Nigeria includes SPDC onshore operations (0.5 million tonnes flared in 2020) D Nigeria includes SPDC onshore operations and SNEPCo offshore operations. A single and SNEPCo offsore operations (0.1 million tonnes flared in 2020). spill at the Bonga field offshore Nigeria amounted to 4.8 thousand tonnes in 2011.

B All spill volumes and numbers are for spills of more than 100 kilograms. E Nigeria includes SPDC onshore operations (11 operational spills in 2020) and SNEPCo offshore operations (0 operational spills in 2020). C As of the end of March 2021, there were three spills under

Shell in NigeriaShell in investigation in Nigeria that may result in adjustments. F We have updated some of our historical figures following review of the data.

79 Shell in Nigeria briefing notes 2021 CAUTIONARY NOTE referred to as “associates”. The term As used in this Briefing Notes, This Briefing Notes contain forward- “Shell interest” is used for convenience “Accountable” is intended to mean: looking statements (within the meaning The companies in which Royal Dutch Shell to indicate the direct and/or indirect required or expected to justify actions or of the U.S. Private Securities Litigation

Spill prevention Spill plc directly and indirectly owns investments ownership interest held by Shell in an entity decisions. The Accountable person does Reform Act of 1995) concerning the are separate legal entities. In this Briefing or unincorporated joint arrangement, after not necessarily implement the action or financial condition, results of operations Notes “Shell”, “Shell Group” and “Group” exclusion of all third-party interest. decision (implementation is usually carried and businesses of Shell. All statements are sometimes used for convenience out by the person who is Responsible) but other than statements of historical fact are, where references are made to Royal Dutch In this Briefing Notes “Shell Companies in must organise the implementation and or may be deemed to be, forward-looking Shell plc and its subsidiaries in general. Nigeria” and “SCiN” are used to refer to verify that the action has been carried statements. Forward-looking statements These terms are also used where no Shell Petroleum Development Company out as required. This includes obtaining are statements of future expectations useful purpose is served by identifying the of Nigeria Limited (SPDC), Shell Nigeria requisite assurance from Shell companies that are based on management’s current

Cohesive communities particular entity or entities. “Subsidiaries”, Exploration and Production Company that the framework is operating effectively. expectations and assumptions and “Shell subsidiaries” and “Shell companies” Limited (SNEPCo), and Shell Nigeria Gas “Responsible” is intended to mean: involve known and unknown risks and as used in this Briefing Notes refer to Limited (SNG) collectively for convenience required or expected to implement actions uncertainties that could cause actual entities over which Royal Dutch Shell plc where references are made to Shell entities or decisions. Each Shell company and results, performance or events to differ either directly or indirectly has control. operating in Nigeria. Likewise, the words Shell operated venture is responsible for its materially from those expressed or implied Entities and unincorporated arrangements “we”, “us” and “our” are also used to refer operational performance and compliance in these statements. Forward-looking over which Shell has joint control are to “Shell Companies in Nigeria” or “SCiN” with the Shell General Business Principles, statements include, among other things, generally referred to as “joint ventures” in general or to those who work for them. Code of Conduct, Statement on Risk statements concerning the potential

Powering the economy the Powering and “joint operations”, respectively. Entities These terms are also used where no Management and Risk Manual, and exposure of Shell to market risks and over which Shell has significant influence useful purpose is served by identifying the Standards and Manuals. This includes statements expressing management’s but neither control nor joint control are particular entity or entities. responsibility for the operationalisation expectations, beliefs, estimates, forecasts, and implementation of Shell Group projections and assumptions. These strategies and policies. forward-looking statements are identified Shell in NigeriaShell in

80 Shell in Nigeria briefing notes 2021 by their use of terms and phrases such as business in developing countries and looking statements. Additional risk factors The content of websites referred to in this “aim”, “ambition”, “anticipate”, “believe”, countries subject to international sanctions; that may affect future results are contained Briefing Notes do not form part of this “could”, “estimate”, “expect”, “goals”, (j) legislative, fiscal and regulatory in Royal Dutch Shell plc’s Form 20-F for the Briefing Notes.

Spill prevention Spill “intend”, “may”, “objectives”, “outlook”, developments including regulatory year ended December 31, 2020 (available “plan”, “probably”, “project”, “risks”, measures addressing climate change; (k) at www.shell.com/investor and www. We may have used certain terms, such as “schedule”, “seek”, “should”, “target”, economic and financial market conditions sec.gov). These risk factors also expressly resources, in this Briefing Notes that the “will” and similar terms and phrases. There in various countries and regions; (l) political qualify all forward-looking statements United States Securities and Exchange are a number of factors that could affect risks, including the risks of expropriation contained in this Briefing Notes and Commission (SEC) strictly prohibits us the future operations of Shell and could and renegotiation of the terms of contracts should be considered by the reader. from including in our filings with the SEC. cause those results to differ materially with governmental entities, delays or Each forward-looking statement speaks Investors are urged to consider closely from those expressed in the forward- advancements in the approval of projects only as of the date of this Briefing Notes, the disclosure in our Form 20-F, File No

Cohesive communities looking statements included in this Briefing and delays in the reimbursement for 15 April 2021. Neither Royal Dutch Shell 1-32575, available on the SEC website Notes, including (without limitation): (a) shared costs; (m) risks associated with plc nor any of its subsidiaries undertake www.sec.gov. price fluctuations in crude oil and natural the impact of pandemics, such as the any obligation to publicly update or revise gas; (b) changes in demand for Shell’s COVID-19 (coronavirus) outbreak; and any forward-looking statement as a result products; (c) currency fluctuations; (d) (n) changes in trading conditions. No of new information, future events or other drilling and production results; (e) reserves assurance is provided that future dividend information. In light of these risks, results estimates; (f) loss of market share and payments will match or exceed previous could differ materially from those stated, industry competition; (g) environmental dividend payments. All forward-looking implied or inferred from the forward-

Powering the economy the Powering and physical risks; (h) risks associated statements contained in this Briefing Notes looking statements contained in this with the identification of suitable potential are expressly qualified in their entirety by Briefing Notes. acquisition properties and targets, and the cautionary statements contained or successful negotiation and completion referred to in this section. Readers should of such transactions; (i) the risk of doing not place undue reliance on forward- Shell in NigeriaShell in

81 Shell in Nigeria briefing notes 2021 Published by Shell International BV in April 2021. More information on the Shell Companies in Nigeria can be found at www.shellnigeria.com