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UpstreamOnline: Shell faces Nigeria call for $3.2bn

By Upstream staff

SHELL has been urged by Nigeria’s National Assembly to pay $3.2 billion into federal coffers that the House Committee on Petroleum Resources alleges are undischarged fiscal obligations arising from the country’s overly complicated petroleum laws, writes Barry Morgan.

The committee this week castigated Minister of State for Petroleum Edmund Daukoru for failing to persuade the supermajor of its liability and for not appearing before the legislature when called.

The House Committee resolved to compel Daukoru’s attendance to explain the ministry’s inaction and to consider imposing “appropriate sanctions” on Shell.

The House further demanded that this year’s cash call, the sum that the Nigerian National Petroleum Corporation (NNPC) should contribute to joint-venture exploration and production funding, should be withheld until the debt is paid.

Meanwhile, NNPC group managing director Funsho Kupolukun said Nigeria looked set to benefit from increased E&P in the wider Gulf of Guinea, which hosts 14 billion barrels of oil in place.

Nigeria accounts for 50% of crude reserves in West Africa, and for every 1 million barrels of crude produced from the region, contiguous countries are expected to attract $10 billion of fresh investment, he said.

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