British energy giant Shell said it paid a total of $67 billion to governments in 26 countries it operates in 2023, and Nigeria got the largest share of the amount.
The amount Shell paid was lower than the $86.1 billion it reported in 2022.
“We paid $14 billion in corporate income taxes and $6 billion in government royalties,” Shell stated. “An additional $47 billion was collected in excise duties, sales taxes, and similar levies on our fuel and other products on behalf of governments.”
Nigeria emerged as the top recipient in 2023, receiving $4.9 billion, according to Shell.
“Despite their treasuries levying no oil and gas royalties,” Shell explained, “Oman ($4.1 billion) and Norway ($3.8 billion) round out the top three recipients for 2023. Our payments to these nations consisted of taxes and fees.”
The UK government received a much smaller sum of $455.2 million, primarily consisting of taxes and fees. The UK stopped imposing royalties on oil and gas in 2002.
Nigeria, on the other hand, received a substantial portion of its $4.9 billion payment in the form of royalties, totalling $727.9 million. However, the United States held the title of the biggest recipient of Shell royalties in 2023, receiving $1.2 billion.
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Shell reported $30.6 billion in adjusted earnings before income tax, depreciation and amortization from its upstream activities in 2023, down from $42.1 billion the prior year.
While Shell is divesting from Nigeria’s onshore asset, it is moving to the deepwater.
Zoe Yujnovich, Shell’s director for global integrated gas and upstream, emphasized the company’s renewed focus on Nigeria’s deepwater and gas sectors.
“We are dedicated to developing the gas value chain in Nigeria,” Ms. Yujnovich said. “This includes a substantial commitment of $1 billion over the next five to ten years to unlock gas resources for domestic use and the Nigeria Liquefied Natural Gas project.”
She further announced an upcoming $5 billion investment opportunity in the Bonga North deepwater project located off the Nigerian coast.
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