PROFIT BEFORE TAX
Main Business Activities
- Upstream and Integrated Gas
- Other support activities
Shell has been present in Nigeria for more than 60 years. Our activities include oil and gas exploration and production.
In 2019, about 10% of Nigeria's domestic gas and about 13% of Nigeria's grid-connected electricity were supplied by the joint venture Shell Petroleum Development Company of Nigeria Ltd. (SPDC). SPDC is the operator of a joint venture agreement in which the Nigerian National Petroleum Corporation (NNPC) holds 55%, and Shell 30%. Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) was set up in 1993 to develop and produce Nigeria's deep-water oil and gas resources. SNEPCo holds interests in four deep-water blocks, two of which it operates: OML-118 (Bonga field) and OML-135. It also has a 50% interest in OPL-245, which is operated by Agip, and a 43.75% interest in OML-133, operated by Esso. Shell Nigeria Gas Ltd. operates a gas transmission and distribution network in Nigeria.
Country Financial Analysis
The statutory corporate income tax rate in Nigeria is 85% for onshore operations, 50% for offshore operations and 30% for other operations, including gas.
Shell has several natural gas projects still in the exploration, development or construction phases. Divestment of producing assets and vandalisation of assets and pipelines in the Niger Delta in recent years have negatively impacted production levels. Shell paid tax in 2019 on profits from producing assets.