UK major Shell produced more Nigerian crude oil and gas in 2023, but it paid lower corporate taxes and royalties to the state during the period.
Shell Petroleum Development Company (SPDC), which operates 18 Oil Mining Leases onshore and shallow offshore, reported an increase to 290,000barrels of oil equivalent per day in 2023, from 267,000BOEPD in 2022.
Shell Nigeria Exploration & Production Company (SNEPCo), the deepwater arm of Shell in the country, pumped 138,000BOEPD in 2023, a 37% jump in output from the 101,000BOEPD it produced in 2022.
The group, however, paid $1.09Billion in 2023, compared with $1.36Billion in 2022, a whopping $270Million less, to the Federal Government of Nigeria in corporate taxes and royalties.
Shell attributed the increase in SPDC (onshore and shallow offshore) output to improved pipeline availability as well as Soku liquids evacuation via Soku to San Barth.
The company also explained the increase in deepwater hydrocarbon production as a result of improved performance of new wells, gains from Well Reservoir Facility Management (WRFM) and increased facility uptime.
