By Tochukwu Bliss, Abuja
The Managing Director, Shell Petroleum Development Company Limited (SPDC) and Chairman of Shell Companies in Nigeria (SiCN), Osagie Okunbor, has said that with the enactment of the Petroleum Industry Act and other supporting regulations, the industry is in a much better place.
Mr. Okunbor shared this optimistic outlook on the future of Nigeria’s oil and gas industry during a panel session at the just-concluded Nigeria Economic Summit (NES) in Abuja.
Speaking on the theme: “Fuelling Growth: The Future of Oil and Gas,” Okunbor addressed concerns surrounding the industry, stressing it is far from declining, even as he noted that recent presidential directives have introduced much-needed coherence to the sector.
Mr. Okunbor highlighted Shell’s commitment to its operations in Nigeria, primarily through SPDC and Shell Nigeria Exploration and Production Company (SNEPCo).
He said: “Through these companies, we collaborate with partners on knowledge sharing, resource pooling and risk mitigation, leading to more efficient and sustainable operations.”
He emphasised the importance of Shell’s technical expertise and resources in supporting Nigerian operations, which contribute to technological advancement and improved efficiencies.
Additionally, Mr. Okunbor underscored Shell’s dedication to local content development, which has helped to boost economic growth and create job opportunities for Nigerians.
“We actively engage with local communities to address their needs and build sustainable relationships, demonstrating our commitment to social responsibility,” he said.
He added that Shell would continue to power progress in Nigeria through sustained collaboration for the socio-economic development of the country.
Through these companies, we collaborate with partners on knowledge sharing, resource pooling and risk mitigation, leading to more efficient and sustainable operations.
Vice Presidentvisit
Meanwhile, Vice President Kashim Shettima accompanied by other dignitaries visited the Shell booth during the Summit, where he listened to the Business Value Manager, Chidi Nkazi, explain Shell Companies’ contribution to the Nigerian economy, local content development and commitment to sustainable development.
Mr. Nkazi presented key achievements of the companies, underscoring Shell’s role in fostering economic growth through tax contributions, job creation and support for local businesses.
He noted that through collaboration Shell Companies in Nigeria are powering Nigeria’s progress with significant contributions to the economy.
Mr. Nkazi highlighted SCiN collaboration with co-venture partners to foster knowledge sharing, resources pooling and risk mitigation leading to more efficient and sustainable operations.
He informed the Vice President of Shell’s technical expertise and resources and how Shell has leveraged its strength to support its Nigerian operations contributing to technological advancement and improved efficiency.
In 2023 alone, Shell Companies paid over $1.09 billion in corporate taxes and royalties to the Federal Government, a vital contribution to national revenue. This included $442 million from SPDC and $649 million from Shell Nigeria Exploration and Production Company (SNEPCo). Additionally, the companies awarded contracts worth $1.98 billion to Nigeria-registered businesses, reflecting a 3% increase from the previous year.
Mr. Nkazi continued: “Shell is committed to contributing positively to the Nigerian economy and the communities in which we operate.
“Our investments not only support government revenue but also empower local economies and create employment opportunities.”
Beyond economic contributions, Shell’s social investments have helped to improve the quality of life in communities. In 2023, SCiN invested $42.2 million in various social programs, focusing on health, education, road safety, and entrepreneurship.
Shell’s commitment to education has seen it support thousands of students through scholarships since the 1950s. More than 3,450 secondary school scholarships, 3,772 university grants, and 1,062 cradle-to-career scholarships have been awarded since 2016.
He concluded that “The partnership between Shell and Nigeria reflects our dedication to sustainable development and community empowerment.
“We will continue to seek innovative ways to support economic growth and improve the livelihoods of Nigerians.” Shell was co-sponsor of the Nigeria Economic Summit.
