Shell Plc revealed that in 2022, it paid Nigeria’s federal government about $4.5bn in production entitlements, taxes, royalties, and fees.
The oil giant disclosed this in its 2022 Sustainability Report, which was obtained on Wednesday. It also noted that Russia’s invasion of Ukraine caused enormous suffering and exacerbated instability in global energy markets and other industries.
The federal government received $3,035,996,709 in production entitlements, $711,850,070 in taxes, $696,488,502 in royalties, and $81,639,634 in fees, according to a breakdown of the payment to Nigeria.
Shell paid a total of $68.2 billion to governments across its global activities in 2022, including $13.4 billion in corporate income taxes and $8.2 billion in government royalties.
In addition, the oil giant reported that it collected $46.6 billion in excise charges, sales taxes, and similar levies on behalf of governments from fuel and other products.
In his opening report, Shell’s chief executive officer, Wael Sawan, stated that Russia’s invasion of Ukraine has produced volatility in global energy markets and other industries in addition to causing immense pain.
He stated that rising energy and food prices had caused inflation to spiral in many nations.
Sawan added, “Our initial response to the invasion was to protect our personnel in Ukraine and assist the Russian populace. We also announced our decision to withdraw from our oil and petrol operations in Russia in accordance with government directives.
We collaborated with organisations in Ukraine and neighbouring nations to provide humanitarian assistance.
“By the end of 2022, we will have donated $74 million to aid the Ukrainian people. While the war disrupted energy supplies, we worked to guarantee that people had access to the energy necessary to keep economies and power flowing.
This included sending a record 194 cargoes of liquefied natural gas (LNG) to Europe in 2022 – nearly five times our average. I am proud of the way Shell employees in the United Kingdom and Norway, among others, stepped up to provide the oil and gas Europe requires.
In the UK, for instance, we launched a £50 million package to support poor energy consumers and donated millions of pounds to charity to assist homes in paying their energy bills. In the Netherlands, we are contributing to a government-backed emergency fund for the same purpose.
“Several Shell employees and their families were touched by the recent tragic earthquakes in Turkey and Syria, but thankfully no staff members were hurt.
Shell has provided relief operations with fuel, chemicals for making foam mattresses and hand sanitizer, as well as aid donations of several million dollars, in addition to matching donations made by its employees throughout the world.
He remarked that the energy and cost of living problems precipitated by the aforementioned occurrences underscored the necessity for a balanced energy transition in which the world achieves net-zero emissions while maintaining a secure and cheap energy supply.
He stated that they expect Liquefied Natural Gas (LNG) to play a significant part in such a shift, saying that LNG provides an essential source of energy now and generates less greenhouse gas emissions than coal.
Shell made large expenditures in 2022 to boost production of LNG and reduce emissions from the process, as evidenced by their participation in two big projects in Qatar, according to Sawan.
“Both will utilise carbon capture and storage, allowing us to provide clients with LNG that has a smaller carbon footprint. In addition, a final investment decision was made to develop the Rosmari-Marjoram petrol project in Malaysia, which will be fueled primarily by renewable energy, he noted.
Shell has submitted necessary disclosures under the UK’s Reports on Payments to Governments Regulations 2014 (amended December 2015) since 2016. The oil giant has voluntarily disclosed the revenues its businesses generate through taxes and royalties since 2012.
Shell thinks that disclosing its tax payments helps the public comprehend the amount and rationale behind its tax payments.