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Sections News Editorial/Opinion Cover Choice Arts & Life Business Politics Sports   Subscription Form Click here       Daily Independent Online.         * Wednesday, July 07, 2004. SPDC pays N162b to govt as royalties, taxes By Charles Okonji Snr Business Correspondent, Lagos Shell Petroleum Development Company of Nigeria Limited (SPDC), last year, paid N162 billion (about $1.2 billion) to the Federal Government as royalties, taxes and other levies, as against N82.080 billion ($608 million) the company paid in 2002, which was an increase of 56.67 per cent. The company, which stated this in its 2003 People and Environment Report, said the increase reflected higher crude prices and higher volumes of crude oil, which were produced during the year.   SPDC added that another Shell company in Nigeria, Shell Nigeria Ultra-Deep Company, which is a subsidiary of SNEPCO, paid a signature bonus, amounting to N28.350 billion (about $210 million). However, the company received a fixed margin within an oil price range of $15 to $19 a barrel because of the Memorandum of Understanding (MOU) it signed alongside other major oil companies with the government in 2002. Under the terms of the MOU, at an oil price of $19 per barrel, the government would charge about $13.78 per barrels as taxes, royalties and equity. Of the remaining $5.22, operating cost and future investment would take about $4 per barrel, while the remaining $1.22 would be for margin among the private shareholders, which include Shell, Total and Agip. At $10 per barrel, the company explained in the report, the government’s tax would fall to about $5.12 per barrel, while the margin to the private shareholders would also reduce to 88 cents. At $30 per barrel, the government’s tax would increase to $24.13 per barrel, while the margin to the private partners would also increase to $1.87 per barrel.         Copyright� 2002. All Rights Reserved Independent Newspapers Limited Block5, Plot 7D, Wempco Road, Ogba, P.M.B. 21777, Ikeja, Lagos State, Nigeria. www.dailyindependentng.com e-mail: [email protected]

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