Nigeria Briefing Notes 2021

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Nigeria Briefing Notes 2021 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.
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