DR. KRZYSZTOF HAGEMEJER
CORPORATE SOCIAL RESPONSIBILITY
SHELL IN NIGERIA
The entry of Shell D’Arcy Exploration Company into the search for oil across the entire Nigerian colony in 1937 marked a watershed in the history of oil and gas resources in the Niger Delta region. The Anglo-Saxon Petroleum, according to Steyn (2009)1, was renamed by that of the Shell Overseas Exploration Company in the official license in 1937. The exploration eventually resulted in a large commercial oil discovery. Shell Nigeria is the common name for Royal Dutch Shell’s Nigeria operations carried out through four subsidiaries- primarily Shell Petroleum Development Company of Nigeria Limited (SPDC). 2
Shell has been active in Nigeria since 1937. Shell activities in Nigeria are exploring and producing oil and gas onshore as well as offshore and gas sales and distribution. Shell also has an interest in Nigeria’s largest liquefied natural gas plant (NLNG). Royal Dutch Shell’s joint ventures account for more than 21% of Nigeria’s total petroleum production (629,000 barrels per day (100,000 m3/d) (bpd) in 2009) from more than eight fields.
The Shell Petroleum Development Company of Nigeria Ltd (SPDC) operates Nigeria’s largest oil and gas joint venture on behalf of: government-owned Nigerian National Petroleum Corporation (55%), SPDC (30%), TEPGN (10%) and NAOC (5%). Shell Nigeria Gas (SNG) is the only international oil and gas company to set up a gas distribution company in Nigeria to supply industry customers.3
Shell started business in Nigeria in 1937 as Shell D’Arcy and was granted an exploration license. In 1956, Shell Nigeria discovered the first commercial oil field at Oloibiri in the Niger Delta and started oil exports in 1958. Prior to the discovery of oil, Nigeria like many other African countries strongly relied on agricultural exports to other countries to supply their economy.4
As oil was struck in commercial quantities in
References: James, T. H (2000). The Politics of Bones, McClelland & Stewart. Okonata, I. and Douglas O.(2003). Where Vultures Feast, Verso. Ajibade, L.T and Awomutti A.A (2009) African Research Review: An International Multi-Disciplinary Journal Adeyemi O.T