Speaking at the launch of its ‘Let’s Go’ advertising campaign, in Lagos, Mr. Mutiu Sunmonu, Chairman, Shell Companies in Nigeria and Managing Director, SPDC, said the funds were invested in alleviating certain environmental issues in the region and also a part of its contribution to the Niger Delta Development Commission, NDDC.
Giving a breakdown of the investments, he said $103.2 million (N16.51 billion) was spent in addressing social and economic development challenges in the Niger Delta, while over $178 million (N28.48 billion) was contributed to the NDDC as required by law.
Also, parent company of SPDC — Royal Dutch Shell — yesterday, said it lost about $700 million (N112 billion) to crude theft and other sundry issues in Nigeria in the second quarter of 2013.
According to its second quarter financial statement, rising costs, oil theft in Nigeria and weak U.S. shale liquids production have hurt its profits, in addition to upward pressure on spending and to uncertainty on output growth.
Peter Voser, outgoing chief executive of Shell, said this led to its abandoning its target to deliver four million barrels a day of production by 2017.
Voser called the company’s second quarter result, published, yesterday, disappointing, adding, however, that a financial target to achieve $175 billion to $200 billion of cash flow from operations for the period 2012 to 2015 was intact.
He said, “Higher costs, exploration charges, adverse currency exchange rate effects and challenges in Nigeria have hit our bottom line. These results were undermined by a number of factors – but they were clearly disappointing for Shell.” Adjusted second quarter net earnings on a current cost of supply (CCS) basis came in at $4.6 billion, down from $5.7 billion a year ago and below analysts’ expectations of around last year’s figures.
Commenting on the ‘Let’s Go’ advertising campaign, Sunmonu said the company launched the campaign to share its goal of being the most competitive and innovative energy company.
According to him, the campaign is intended to demonstrate Shell’s contributions towards a better future for Nigeria and its people.
He said, “Shell’s messages are built around gas, health, education and job creation, and we believe these ‘life’ issues will enable Nigerians relate better to the challenges of a secure energy future.”
Information from Vanguard was used in this report.