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Tag: Shell

  • Reps grill Shell, Total, other over alleged tax evasion

    Reps grill Shell, Total, other over alleged tax evasion

    The House of Representatives on Wednesday grilled Shell Petroleum Development Company of Nigeria, Total Energies and First E and P over alleged tax evasion.

    The companies appeared before the ad hoc Committee investigating the Structure and Accountability of the Joint Venture (JV) Business and Production Sharing Contracts (PSCs) of the NNPC since 1990 to date.

    Rep. Abubakar Fulata, the Chairman of the committee, frowned at their operations regarding the payment of taxes to Federal Inland Revenue (FIRS) Service.

    He said the FIRS does not rely on Stock Certificate of Crude Oil as well as Certificate of Acceptance of fixed Assets (CAFA).

    The committee said the Stock Certificates gave clearer pictures of the oil being lifted while the CAFA certificate was the basis for capital allowances claims.

    The leader of the Shell delegation, Mr Bashir Bello, said SPDC had been in operation since 1929 and promised to furnish the committee with the relevant documents being requested with exception of CAFA certificate.

    The committee said Shell, Total and First E & P were in violation of Nigeria Law for making capital allowances claims without the CAFA Certificate.

    The companies in their separate submissions and presentations said indeed they had been in operation and relying on Petroleum Tax Act to make capital allowance claims.

    They claimed that the CAFA was domiciled with the Ministry of Industry.

    The committee argued said it was not only the PT Act they were bound to obey, adding that they had no power to select which law to obey and which one not to obey.

    The panel demanded that the oil companies, among other things, furnished the committee with stock certificate, capital allowance enjoyed and the contributions to NNPC-JV and PSCs Account.

  • Shell, Total, AGIP under fire over $85 billion tax claims

    Shell, Total, AGIP under fire over $85 billion tax claims

    The House of Representatives ad hoc Committee on structure and accountability of Joint Venture (JV) Business and Production Sharing Contracts (PSCS) of Nigerian National Petroleum Company (NNPC) Ltd. has summoned Total Upstream over tax claims of 85 billion dollars.

    Rep. Abubakar Fulata, the Chairman of the committee said this at an investigative hearing in Abuja on Tuesday.

    He said almost all the oil companies in Nigeria collected capital allowance and investment tax claims without Certificate of Acceptance of Fixed Assets (CAFA) which constituted breach of Nigeria’s extant laws.

    CAFA is generally issued to evidence an approval for the purchase of assets valued at ₦500,000 and above.

    Fulata also summoned AGIP Energy Natural Resources Ltd, Shell Nigeria Exploration Company. Ltd. Chevron and other oil companies, saying that most of the companies were making claims of capital allowance from the government without the certificate.

    He said companies found to be culpable would be compelled to make necessary refund to the government coffers.

    According to him, all companies in Nigeria do not have the CAFA certificates and they are enjoying capital allowance amounting to millions of dollars.

    ”These are things they cannot do in their country but doing in Nigeria. Unless you clear the malfeasance of this allowance, the committee would be compelled by the relevant agency to recover this money,” he said.

  • Crude oil theft: Shell discovers more illegal connections on export pipeline

    Crude oil theft: Shell discovers more illegal connections on export pipeline

    The Shell Petroleum Development Company of Nigeria Limited (SPDC) says it has discovered illegal connections on the onshore section of the 48-inch Forcados export pipeline.

    TheNewsGuru.com (TNG) reports Shell made this known while saying it will resume crude oil exports at the Forcados oil terminal by October ending when ongoing repairs would have been completed.

    The Forcados Oil Terminal, operated by the SPDC, is where the Afremo A Platform, a platform where crude oil theft has been reported, is located.

    The Forcados export terminal typically exports around 250,000 barrels of crude oil per day. The SPDC declared a Force Majeure on oil exports from the terminal in August.

    Force Majeure is a legal clause inserted in contracts to absolve parties from liabilities in the event of circumstances beyond their control.

    SPDC’s Media Relations Manager, Abimbola Essien-Nelson on Wednesday disclosed that the illegal connections were discovered on the 48-inch Forcados export pipeline during surveillance.

    Essien-Nelson stated that in addition to the repairs, SPDC is working to remove and clamp theft points on the onshore pipelines. She stressed that active illegal connections to SPDC’s joint venture production lines and facilities in the western Niger Delta and inactive illegal connections would be removed.

    “This is to ensure full crude oil receipts at the terminal. This scheduled programme is continuous as new illegal connections are identified during surveillance of pipelines.

    “An example of such illegal connection is that on the onshore section of the 48-inch Forcados export pipeline which is currently not active and has no sign of leak at the interconnection point,’’ she stated.

    Essien-Nelson reiterated SPDC’s commitment to running its assets safely, reliably and in accordance with globally-accepted standards.

    “SPDC continues to work tirelessly, alongside government and other partners towards the eradication of crude theft from its infrastructure,” she stated.

  • You must refund $200m to FG, Senate tells SHELL

    The Senate has demanded a refund of $200million, any amount short of what was paid by SPDC, including penalties and interests under the lease agreements to the Federal Government.

    Also, the Senate, on Wednesday at plenary constituted an Ad Hoc Committee to investigate Shell Petroleum Development Company (SPDC) over non-compliance with the Petroleum Act and violation of Joint Venture Agreement entered with the Federal Government.

    TheNewsGuru.com, (TNG) reports the Senate had mandated the Ad Hoc committee to investigate the Oil Mining Lease granted to SPDC between 1959 to 1989, and 1989 to 2019 under the SPDC and NNPC Joint Venture agreement.

    The committee, constituted by the Senate President Ahmad Lawan, has Sen. Sabi Abdullahi (APC- Niger) as Chairman.

    Other members include Senators George Thompson Sekibo,(PDP-Rivers) Abdullahi Yahaya, (PDP-Kebbi) Bassey Albert Akpan,(PDP-Akwa Ibom) Solomon Adeola,(APC-Lagos) Smart Adeyemi(APC-Kogi) and Aishatu Ahmed. ((APC-Adamawa).

    The Senate demanded a refund of 200 million dollars, any amount short of what was paid by SPDC, including penalties and interests under the lease agreements to the Federal Government.

    The resolution was reached after it considered another motion sponsored by Sen. George Sekibo (PDP- Rivers ).

    The motion entitled: “Non payment of the sum of 200 million dollars accruals from the Oil Mining Lease (OML), by Shell Petroleum Development Company of Nigeria Limited under the SPDC/NNPC Joint Venture Agreement.

    “And, illegal and unlawful renewal of Oil Mining Leases by the Ministry of Petroleum Resources/Department of Petroleum Resources (DPR) contrary to the provision of paragraph 10 of the First Schedule to the Petroleum Act 1969 (now Section 86(1) and 86(6) of the Petroleum Industry Act 2022.”

    Sekibo, in his lead debate noted that the Joint Venture (JV) agreement was in contravention of the provisions of the Petroleum Act 1969, by the defunct Department of Petroleum Resources (DPR) and the Ministry of Petroleum Resources, granted to the SPDC, NNPC a 30-year Oil Mining Lease from 1959 to 1989.

    He observed that doing so constituted an illegal extension of the Oil Mining Lease by 10 years in the first instance, instead of the prescribed term of 20 years, without recourse to the provisions of the Petroleum Act 1969 in paragraph 10 of the First Schedule.

    He said upon the expiration of the initial Oil Mining Lease in 1989, SPDC and NNPC JV, was granted another 30-year Oil Mining Lease again from 1st July 1989 to 30th June, 2019, by the Ministry of Petroluem and DPR instead of the 20 years lease prescribed by the Petroleum Act.

    This, he said, is contrary to paragraph 10 of the First Schedule to the said act.
    He revealed that in the initial additional 10 years Oil Mining Lease of 1969 to 1989, illegally granted to the SPDC and NNPC JV by the Ministry of Petroleum Resources and DPR, the Federal Government lost from fees, taxes, rents and royalties the sum of 120 million dollars.

    He stated that in the second instance of the extra 10 years the Federal Government also lost a further sum of 80 million dollars, amounting to a total of 200 million dollars.

    He said the loss of 200 million dollars which was equivalent to N83.130 billion, could have been of great value to the economy of the nation.

    He expressed worry that the trend of illegal extension of Joint Venture (JV) period from 20 years to 30 years lease period without recourse to the Petroleum Act may have also applied to other Joint Venture agreements with the International Oil Companies (IOCs) and need to be investigated.

    He disclosed that a whistle-blower petitioned the EFCC on the need to recover the fund from SPDC for the illegal extensions by the Ministry of Petroleum Resources, DPR and to further investigate all other Joint Venture agreements that involved the aforementioned IOCs.

    He noted that the power to make laws for the Federation as vested in the National Assembly by the Constitution also encompasses the power to make laws for the promotion of national prosperity and a dynamic self-reliant economy as provided in section 16(1)(a) of the 1999 Constitution of the Federal Republic of Nigeria as amended.

    He said the Constitution also gives power to the National Assembly to carry out appropriate investigation on misapplication of the laws enacted by the National Assembly, as provided in Section 88 of the Constitution.

  • Senate probes Shell over Joint Venture breach, seeks $200m refund to FG

    Senate probes Shell over Joint Venture breach, seeks $200m refund to FG

    The Senate, on Wednesday, constituted an Ad-Hoc Committee to investigate Shell Petroleum Development Company (SPDC) over non-compliance with the Petroleum Act and breach of the Joint Venture Agreement entered into with the Federal Government.

    The Ad-Hoc committee was mandated to probe the Oil Mining Lease granted to SPDC between 1959 to 1989, and 1989 to 2019 under the SPDC/NNPC Joint Venture agreement.

    The Ad-Hoc Committee which was constituted by the Senate President, Ahmad Lawan, has Senator Aliyu Sabi Abdullahi as its Chairman.

    Other members on the panel include Senators George Thompson Sekibo, Abdullahi Yahaya, Bassey Albert Akpan, Olamilekan Solomon Adeola, Smart Adeyemi and Aishatu Dahiru Ahmed.

    Accordingly, the chamber demanded a refund of $200 million (USD) or any amount short of what was paid by SPDC, including penalties and interests under the said lease agreements  to the coffers of the Federal Government.

    The resolution was reached by the chamber after it considered a motion sponsored by Senator George Thompson Sekibo (PDP, Rivers East).

    The motion was entitled, “non payment of the sum of $200,000,000 accruals from the Oil Mining Lease (OML), by Shell Petroleum Development Company of Nigeria Limited under the SPDC/NNPC Joint Venture Agreement and, illegal and unlawful renewal of Oil Mining Leases by the Ministry of Petroleum Resources/Department of Petroleum Resources (DPR) contrary to the provision of paragraph 10 of the First Schedule to the Petroleum Act 1969 (now Section 86(1) and 86(6) of the Petroleum Industry Act 2022.”

    Sekibo, in a presentation, observed that the SPDC/NNPC Joint Venture (JV) agreement, in contravention of the provisions of the Petroleum Act 1969, by the defunct Department of Petroleum Resources (DPR) and the Ministry of Petroleum Resources, granted to the SPDC/NNPC a 30-year Oil Mining Lease from 1959 to 1989.

    He observed that doing so constituted an illegal extension of the Oil Mining Lease by 10 years in the first instance, instead of the prescribed term of 20 years, without recourse to the provisions of the Petroleum Act 1969 in paragraph 10 of the First Schedule.

    According to the lawmaker, “upon the expiration of the initial Oil Mining Lease in 1989, SPDC/NNPC JV, was granted another 30-year Oil Mining Lease again from 1st July 1989 to 30th June, 2019, by the Ministry of Petroleum Resource/DPR instead of the 20 years lease period prescribed by the Petroleum Act, which is contrary to paragraph 10 of the First Schedule to the said Act”.

    He disclosed that in the initial additional 10 years Oil Mining Lease of 1969 to 1989, illegally granted to the SPDC/NNPC JV by the Ministry of Petroleum Resources/DPR, the Federal Government lost from fees, taxes, rents and royalties the sum of $120, 000, 000.

    He stated that in the second instance of the extra 10 years the Federal Government also lost a further sum of $80,000,000, making total of $200,000,000.

    He noted that a loss of $200,000,000, which is equivalent to N83, 130, 000, 000 billion, could have been of great value to the economy of the nation.

    He observed that the illegal action by the Ministry of Petroleum Resources/DPR as regards the SPDC/NNPC JV may not be the only non-compliant grant as details of other Joint Venture agreements with: Chevron Nigeria Limited, ENI Joint Venture, EXXON Mobil Upstream JV, Total E & P Nigeria Limited JV, need to be ascertained through a thorough investigation to verify compliance with the provisions of the extant law.

    He expressed worry that that the trend of illegal extension of Joint Venture (JV) period from 20 years to 30 years lease period without recourse to the Petroleum Act may have also applied to other Joint Venture agreements with the International Oil Companies (IOCs) and need to be investigated.

    Sekibo informed the chamber that SPDC went to Court on the clarity of the lease period and the judgment was not in their favour as regards the additional 10 years lease period in the two instances.

    “Regrettably, the court failed to order the SPDC to pay the arrears the 20 years lease period to the tune of $200,000,000 to the Federal Government for the illegal extensions”, he said.

    The lawmaker further disclosed that a whistle-blower petitioned the EFCC on the need to recover the sum of $200,000,000 from SPDC for these illegal extensions by the Ministry of Petroleum Resources/DPR and to further investigate all other Joint Venture agreements that involved the aforementioned IOCs.

    He noted that the power to make laws for the Federation as vested in the National Assembly by the Constitution also encompasses the power to make laws for the promotion of national prosperity and a dynamic self-reliant economy as provided in section 16(1)(a) of the 1999 Constitution of the Federal Republic of Nigeria as amended.

    He emphasised that the Constitution also gives power to each House of the National Assembly to carry out appropriate investigation on observed misapplication of the laws enacted by the National Assembly, as provided in Section 88 of the Constitution.

    He stated further that Section 89 of the same Constitution provides the process on how such investigation should be carried out.

    Accordingly, the Senate resolved to constitute an Ad-Hoc Committee to investigate the non-compliance with the Petroleum Act and the Oil Mining Lease granted to SPDC between 1959 to 1989, and 1989 to 2019 under the SPDC/NNPC Joint Venture Agreement; and compel SPDC to refund to the Federal Government the sum of $200,000,000 or any amount short of what was paid, including penalties and interests under the said lease agreement.

  • DAY 3: Itsekiri youths mount blockade at Shell facility

    DAY 3: Itsekiri youths mount blockade at Shell facility

    Protesting Itsekiri host communities of Ugborodo in Warri Southwest Local Government Area of Delta State on Sunday imposed a blockade on Shell Petroleum Development Company’s Ogidigben flow station in the area.

    Despite the presence of security operatives around the company, the protest, which started on Friday, continued on Sunday.

    According to some youths, the soldiers were brought to subdue the protest by all means.

    One of the protesters explained that the soldiers were deployed by the oil and gas major, who were intimidating and threatening to deal with them if they do not vacate the company’s premises by the end of Sunday.

    They claimed that the purported threat by security agents was capable of causing crisis in the area.

  • Host community grounds Shell’s activities in Bayelsa as govt intervenes

    Host community grounds Shell’s activities in Bayelsa as govt intervenes

    Otuasega community in Ogbia Local Government Area of Bayelsa State shut activities at Shell Petroleum Development Company (SPDC) facilities on Dec. 21, 2021 to protest its failure to provide electricity by Dec. 14, 2021 as promised.

    Shell had earlier set Dec. 14, 2021 as target date to begin power supply from its Kolo Creek Oil and Gas Manifold to cluster communities in the area.

    However, the State Government on Monday quickly intervened, directing the Managing Director of the State Electricity Company, Mr Olice Kemenanabo to immediately connect Otuasega community to the national grid.

    The Deputy Governor, Lawrence Ewhrudjakpo gave the directive as the government waded into a crisis between SPDC and the host community.

    Media aide to the Deputy Governor, Mr Doubara Atasi said in a statement that Ewhrudjakpo gave the directive during an emergency meeting held with Otuasega community leaders and representatives of SPDC.

    The Deputy Governor decried the continued blackout in Otuasega community and in its environs.

    He blamed SPDC’s failure on the inability of the government, Shell, and the people of Otuasega to meet regularly and follow up on resolutions reached at the Sept. 24, 2021 tripartite meeting on power supply.

    He said the community would enjoy power supply from the national grid as a temporary measure, while efforts would be intensified to power the community from the SPDC’s manifold in the first quarter of 2022.

    Ewhrudjakpo assured that regular meetings would be held with Shell until the power supply issue was resolved.

    He appealed to the people of Otuasega to be patient and to remain law-abiding to enable the government and Shell to end blackout in the community.

    Earlier, the Otuasega Community Development Committee chairman, Mr Raniyar Marcus, expressed disappointment with Shell for reneging on its promise to deliver the job by Dec. 14, 2021.

    Marcus noted that the Dec. 21, 2021 non-violent protest that led to the shutting of the SPDC manifold was staged by community members to register their anger.

    He alleged also that Shell had always taken the Otuasega people for granted.

    In his presentation, Shell’s Community Relations Manager (East), Mr Evans Krukrubo, explained that the company was not happy that the power project was not delivered on schedule.

    Krukrubo, however, thanked the Otuasega community for their maturity, patience and understanding so far.

    He assured them that Shell was committed to working with the state government to deliver on the project by the end of February.

  • BREAKING: Shell Petroleum Company bows to court order, agrees to pay Ogoni people N45.9bn compensation

    BREAKING: Shell Petroleum Company bows to court order, agrees to pay Ogoni people N45.9bn compensation

    The Ogoni people of Rivers state on Wednesday finally got a favorable judgment at the Federal High Court in Abuja where Shell Petroleum Company agreed to pay a huge sum of N45.9B to the people for the loses suffered during oil spillage that ravaged their communities.

    The monetary reward ordered by a Federal High Court ten years ago will be paid to the Ogonis through their lawyer, Chief Lucius Nwosu.

    Shell Petroleum Company through its lawyer, Chief A. O Ejelamo, a Senior Advocate of Nigeria announced the decision to pay up the money while addressing Justice Ahmed Ramat Mohammed of the Federal High Court Abuja on Wednesday.

    The senior lawyer sought order of Justice Mohammed to permit payment of the debt through the Chief Registrar of the court in a bank account to be opened for the purpose.

    Final decision to pay up the money was endorsed by Justice Ahmed Ramat Mohammed of the Federal High court Abuja.

    Although the oil company had sought to pay through the Chief Registrar of the court, it was ultimately agreed that the amount be paid to the aggrieved people through their lawyer.

    The amount was awarded in favour of Ogoni people by Justice Ibrahim Buba of the Lagos division of the Federal High court on June 14, 2010 in his judgment in a suit filed by the Ogoni people.

    However, the Ogonis waived the interest on the principal amount as concession agreed upon during reconciliation.

    ……Details later

  • Shell appoints Elohor Aiboni first female MD for exploration company SNEPCO

    Shell appoints Elohor Aiboni first female MD for exploration company SNEPCO

    Global energy firm, Shell, has announced the appointment of Mrs. Elohor Aiboni as the Managing Director of its Nigeria deep-water business, Shell Nigeria Exploration and Production Company Limited, SNEPCO.

    The Media Relations Manager, Shell Petroleum Development Company of Nigeria, Mr. Bamidele Odugbesan, revealed this in a statement on Sunday in Yenagoa.

    The News Agency of Nigeria reports that the development is coming on the heels of the oil and gas firm’s recent announcement that it was divesting from its onshore and shallow waters operations to concentrate on deep offshore business.

    Odugbesan said that Elohor was the first female to lead the Shell exploration company in the more than six decades of Shell’s operations in Nigeria.

    She succeeds Bayo Ojulari, who retired on July 31 after five years as SNEPCO MD, having served the Shell group for more than 30 years.

    Until her new appointment, Elohor was the Bonga Asset Manager responsible for overseeing end-to-end production delivery for Nigeria’s pioneer deep-water Floating Production, Storage and Offloading vessel, Bonga, which had produced over 900 million barrels of oil since the beginning of its operations in 2005.

    “Elohor’s appointment is a product of diligence, competence and commitment to the Shell ideals and core values, amidst our strong focus on diversity and inclusion.

    “We take pride in our intention of being one of the most diverse and inclusive organisations in the world, and focus on further improving inclusion and representation in critical areas, including gender,” the statement quoted Shell’s Senior Vice President for Nigeria, Marno de Jong, as saying.

    Odugbesan also said that Elohor now joins over 300 women in senior leadership positions in the Shell Group, representing more than 31 per cent of the company’s executive positions.

    “Her 19-year career in Shell has seen her move from a field engineer to several roles in production operations; project and asset management; operations readiness and assurance.

    “She was at a time the Business Adviser to the Executive Vice President for Shell Sub-Saharan Africa, and had also managed third-party interface across several Shell assets in Nigeria and Kazakhstan.

    “Prior to her role as Bonga Asset Manager, Elohor led production delivery for shallow offshore as Asset Manager for Sea Eagle FPSO in Nigeria’s Niger Delta.

    “Elohor holds a master’s degree in Integrated Environmental Management from the University of Bath, UK, and a bachelor’s degree in Chemical Engineering from the University of Benin, Nigeria.

    “She is passionate about developing talent and leads a diverse team that strives to simplify work processes and pursue continuous improvements.

    “Her leadership of the Bonga team had seen the asset receive numerous awards, including the CEO HSSE Awards, Upstream Impact Award, and the Asset of the Year Runner up in 2019, in the Shell Group,” Odugbesan said.

  • Shell appoints first female MD for exploration coy SNEPCO

    Shell appoints first female MD for exploration coy SNEPCO

    Global energy firm Shell has announced the appointment of Mrs Elohor Aiboni, as the Managing Director of its Nigeria deep-water business, Shell Nigeria Exploration and Production Company Limited (SNEPCO).

    Mr Bamidele Odugbesan, the Media Relations Manager, Shell Petroleum Development Company of Nigeria (SPDC), made this known in a statement on Sunday, in Yenagoa.

    The development is coming on the heels of the oil and gas firm’s recent announcement that it was divesting from its onshore and shallow waters operations to concentrate on deep offshore business.

    Odugbesan said that Elohor was the first female to lead the Shell exploration company, in the more than six decades of Shell’s operations in Nigeria.

    She succeeds Bayo Ojulari, who retired on July 31, after five years as SNEPCo’s MD, having served the Shell group for more than 30 years.

    Until her new appointment, Aiboni was the Bonga Asset Manager responsible for overseeing end-to-end production delivery for Nigeria’s pioneer deep-water Floating Production, Storage and Offloading (FPSO) vessel, Bonga, which had produced over 900 million barrels of oil since the beginning of its operations in 2005.

    “Elohor’s appointment is a product of diligence, competence and commitment to the Shell ideals and core values, amidst our strong focus on diversity and inclusion.

    “We take pride in our intention of being one of the most diverse and inclusive organisations in the world, and focus on further improving inclusion and representation in critical areas, including gender,” the statement quoted Marno de Jong, Shell’s Senior Vice President for Nigeria as saying.

    Odugbesan also said that Elohor now joins over 300 women in senior leadership positions in the Shell Group, representing more than 31 per cent of the company’s executive positions.

    “Her 19-year career in Shell has seen her move from a field engineer to several roles in production operations; project and asset management; operations readiness and assurance.

    “She was at a time the Business Adviser to the Executive Vice President for Shell Sub-Saharan Africa, and had also managed third-party interface across several Shell assets in Nigeria and Kazakhstan.

    “Prior to her role as Bonga Asset Manager, Elohor led production delivery for shallow offshore as Asset Manager for Sea Eagle FPSO in Nigeria’s Niger Delta.

    “Elohor holds a master’s degree in Integrated Environmental Management from the University of Bath, UK, and a bachelor’s degree in Chemical Engineering from the University of Benin, Nigeria.

    “She is passionate about developing talent and leads a diverse team that strives to simplify work processes and pursue continuous improvements.

    “Her leadership of the Bonga team had seen the asset receive numerous awards, including the CEO HSSE Awards, Upstream Impact Award, and the Asset of the Year Runner up in 2019, in the Shell Group,” Odugbesan said.