Shell Petroleum, world’s fifth-largest company by revenue, has announced that its ongoing Assa North/Ohaji South gas development in Imo State will generate about 600 million standard cubic feet of gas per day, an energy equivalent of about 2,400 Megawatts (MW) of electricity, which is enough to supply uninterrupted power to 2.4 million homes.
Launching the 2018 Shell in Nigeria “Briefing Notes” in Lagos, Managing Director of Shell Petroleum Development Company of Nigeria Limited (SPDC) and Country Chair Shell Companies in Nigeria, Osagie Okunbor, on Monday, revealed that the oil major paid a total of $17.8 billion in form taxes, royalties, and levies to the Nigerian Government between 2014 and 2018.
Okunbor also stated that the oil company contributed $2 billion to Niger Delta Development Commission (NDDC), and expended $239 million under its Global Memorandum of Understanding (GMoU), for the development of host communities.
The Target For Increased Power Generation And Industrialisation.
Beside the completion of its invitation to tender (ITT), the company said it was about taking a Final Investment Decision (FID) on the $10 billion Bonga South-West Aparo project.
In his statements, he said, “SPDC took the final investment decision on the Assa North/Ohaji South project last December giving a major momentum to the domestic gas aspiration of the federal government for increased power generation and industrialisation.”
Okunbor termed the project a game changer in Nigeria’s pursuit for energy sufficiency and economic growth.
Giving a summary of the gas production, Okunbor stated that 300 million standard cubic feet of gas per day would be treated at a new gas processing plant owned by the SPDC Joint Venture, while the other 300 million standard cubic feet will go to a proposed gas processing plant by Seplat Petroleum.
In addition, Shell echoed its resolve to support development in Nigeria, by exploring more oil in the deep-water border of the country. Mentioning that 13% of the electricity generated in 2018 came from the 650 megawatts (MW) Afam VI power plant.
Move By Shell To Aid Energy Generation In Nigeria.
The oil firm, however, noted that the Assa project will further support energy generation in the country. This project will further bring about development in the state. Thus, providing an enabling environment for indigenes of the state to benefit from the company’s corporate social responsibility.
However, it can be noted that the epileptic electricity supply in the country has been a major setback experienced by businesses over the years. Therefore, this move by Shell is connected with the federal government’s ambition to increase electricity generation in order to help lower overheads incurred by these businesses.
Shell Petroleum Development And Production Company In Nigeria.
Shell Petroleum Development and Production Company of Nigeria, is one of the world’s foremost energy companies. The oil producing firm plays a significant role in helping to meet the world’s growing energy demand in environmentally, economically and socially responsible ways.
The company has a history of over 5 decades in Nigeria and the largest footmark of all the international oil and gas firms operating in the country.