Shell paid Nigeria $4.32 billion in 2017 as oil theft rises

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Royal Dutch Shell said it is paying more royalty to the Nigerian government compared to payments he made in previous years.

In 2017 alone, Shell said it paid a total of $4.32 billion compared to $3.64 billion it paid to the Nigerian National Petroleum Corporation, NNPC, the state oil company.

In its annual sustainability report, Shell disclosed that oil theft went up 50 percent, rising to roughly 9,000 barrels per day (bpd) in 2017 from 6,000 bpd in 2016, the report said

The company said the shutdown of the Forcados export terminal for much of 2016 “reduced opportunities for third-party interference”

Sabotage-related oil spill incidents rose to 62, from 48 in 2016, though the volume spilled fell to 1,400 tonnes, from 3,900 tonnes in 2016

Shell’s operational spills in Nigeria rose by one to nine in 2017, but it said the volume of oil spilled fell to 100 tonnes from 300 tonnes in 2016, it claimed in the report.

As a worrying concern that oil theft is an unending menace in Nigeria, the company said that theft and sabotage account for 90 percent of Nigerian oil spills

Shell claimed that its local unit, SPDC “made $10 million available” in 2017 to help set up the Hydrocarbon Pollution and Remediation Project (HYPREP), a government-led body to clean up contaminated sites, and that it developed with the International Union for Conservation of Nature (IUCN) a new framework for remediation of soil and groundwater that it will begin testing in 2018