Shell declares $20.1b profit

Royal Dutch Shell has declared a net profit of $20.1 billion from its operations in 2021. This is coming as the Shell Nigeria Gas (SNG), received accolades from industry regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), for deliberate and active investment in the nation’s critical gas infrastructure to supply gas for powering industries in key locations in the country.

Shell surged back into profit last year as oil prices rocketed on recovering demand with economies reopening from pandemic lockdowns.

Shell said in a statement that the profit was a tremendous feat after it recorded a loss after tax of $21.7 billion in 2020.

Chief Executive Officer of Shell, Ben van Beurden, said 2021 was a momentous year for Shell, noting that the group also simplified its name and structure and outlined plans to slash greenhouse gas emissions.

Following the bumper earnings, Shell said it planned a share buyback programme totaling US$8.5 billion (7.5 billion euros).

Meanwhile, the Chief Executive of NMDPRA, Farouk Ahmed, said Nigeria needs accelerated gas infrastructure to deepen domestic gas distribution across Nigeria.

Ahmed spoke when he met the Managing Director, SNG, Ed Ubong and the General Manager, Shell Energy Nigeria, Markus Hector in Abuja recently to discuss how to deepen investments in domestic gas operations in Nigeria.

Ahmed said, “I commend Shell Nigeria Gas for investing heavily in critical gas infrastructure to supply gas for power generation to industries,” adding that his agency was putting in place the right framework to encourage competition, competitive prices, flexibility of supply and investments in gas infrastructure.

“The Federal Government’s desire to boost infrastructure development, especially in the midstream, necessitated the enactment of the Petroleum Industry Act (PIA) and the NMDPRA will put the necessary regulations to make business favourable to investors,” he said.

The NMDPRA helmsman encouraged SNG to continue to be transparent, responsible and to practice good corporate governance in its business dealings in the country.

Managing Director, SNG, Ed Ubong, highlighted that clear guidelines and regulations that support and protect investments are key in boosting investors’ confidence in the industry.

He said, “SNG currently distributes natural gas for power generation to industrial clusters around Ogun, Abia, Bayelsa, Rivers and Lagos States and we are currently exploring markets along the Ajaokuta-Kaduna-Kano pipeline project for investment opportunity to take gas to industries up north of Nigeria.”

Speaking in the same vein, General Manager, Shell Energy Nigeria, Mr Markus Hector, commended the Federal Government for enacting the Petroleum Industry Act, which he said would support the growth of the gas industry in Nigeria.

“There are vast business opportunities for Shell gas business in Nigeria and we plan to significantly expand our investment in gas distribution under the right regulatory environment,” Hector said.