Shell denies owing Nigeria $947 million

Channels Television  
Updated November 25, 2012

Oil giant, Royal Dutch Shell has reacted to claims that its SNEPCO division owes Nigeria $947 million from gas produced at its offshore Bonga oil field.

Shell's office in Port-Harcourt
People walk past Dutch oil giant Shell's sign board in Nigeria

The company in statement claimed that the allegation is incorrect, adding that it cannot comment further as it does not know the basis of the calculations that yielded the $947 million number.

On the claim that Nigeria may have lost out on $29 billion due to lower than usual prices for gas sales to NLNG, who’s shareholders include shell, Total, ENI and state oil firm NNPC, Shell noted that NLNG is a separate entity and the NLNG feed gas price was negotiated at arm’s length and is several times higher than the current price of domestic gas.