Shell PLC remitted a total of $28.1 billion to governments in 24 countries where the British energy giant has upstream operations, with Nigeria maintaining its status as top recipient at $5.34 billion.
Shell counts as payments to government those arising from exploration, prospection, discovery, development and extraction of oil, natural gas and minerals or other materials. The company excludes payments related to refining, gas liquefaction or gas-to-liquids activities, as well as payments made by entities where Shell has joint control. Shell also said that in line with a United Kingdom law requiring UK companies to report payments to governments, Shell only reports payments equal to or above the GBP 86,000 ($114,500) or equivalent materiality threshold.
The bulk of the total figure for the countries that fall within the threshold was production entitlements, totaling $11.39 billion. Taxes accounted for $10.46 billion. Royalties were $4.32 billion. Fees comprised $1.91 billion. Bonuses and infrastructure improvements recorded $12.98 million and $1.13 million respectively.
However, Shell said in a separate statement, “In 2024, Shell paid $18.2 billion in taxes to governments. We paid $12.5 billion in corporate income taxes ($0.5 billion of which were withholding taxes) and $5.7 billion in government royalties”.
Nigeria received $3.8 billion in production entitlements, $648.73 million in taxes and $780.23 million in royalties.
On March 13, 2025, Shell said it had completed the sale of its Niger Delta subsidiary to a Nigerian consortium for $1.3 billion. Renaissance Africa Energy Holdings has taken over Shell Petroleum Development Company of Nigeria Ltd. (SPDC) and consequently acquired a 30 percent operating stake in the SPDC Joint Venture (JV).
The SPDC JV holds 15 onshore oil mining leases (OMLs) and three shallow-water OMLs that have been plagued by oil spills, most of which Shell blamed on oil theft and sabotage.
“The divestment of SPDC aligns with Shell’s intent to simplify its presence in Nigeria through an exit of onshore oil production in the Niger Delta and a focus of future disciplined investment in its Deepwater and Integrated Gas positions”, Shell said in an online statement then.
Shell, however, previously pledged $6 billion in investment for the West African country, the bulk of which is for the expansion of the Bonga oilfield project, according to a statement by President Bola Tinubu December 7, 2023.
Elsewhere, Oman also maintained its place as the second-biggest recipient of Shell payments to governments for 2024 at $4.59 billion, despite not levying royalties. That consisted of $633.71 million in production entitlements and $3.95 billion in taxes.
Brazil rounded up the top three at $3.7 billion, including $327.69 million in production entitlements, $656.74 million in taxes and $1.15 billion in royalties.
To contact the author, email jov.onsat@rigzone.com
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