Nigerians were once again the losers, as six international oil companies — Royal Dutch Shell, ConocoPhilips, Chevron, Total, Eni and ExxonMobil — paid their shareholders a dividend of $38.76 billion (N6.201 trillion) in 2013.
The dividends were for the 2012 financial year, which was approved by their respective shareholders a couple of weeks ago.
The dividends declared by the six oil majors represent about 52.93 per cent of the Nigerian Stock Exchange’s, NSE, market capitalization of N11.714 trillion.
The market capitalization of the NSE is the total market value of all the companies listed on the stock exchange.
Last year, Nigerians also missed out from the over $30.82 billion or N4.87 trillion cumulative dividends declared by five IOCs in their home countries, following their refusal to list their shares on the NSE.
The five oil majors operating in Nigeria – Shell, Chevron, ConocoPhilips, Statoil, and Eni, had declared a cumulative dividend of $30.82 billion for the 2011 financial year.
Dividends declared in 2012 are as follows:
•Shell – $7.4 billion (N1.184 trillion);
•ConocoPhillips – $3.278 billion (N524.48 billion);
•Chevron — $6.8 billion (N1.088 trillion);
•Total — $6.8 billion (N1.088 trillion);
•Eni — $4.38 billion (N700.8 billion) and
•ExxonMobil – $10.1 billion (N1.616 trillion)
Shell Nigeria operations
Despite excluding Nigerians from the dividends, Shell, in its financial statement, warned that an erosion of the business and operating environment in Nigeria would adversely impact its operations.
The company claimed it faced various risks in its Nigerian operations, ranging from security issues surrounding the safety of its people, host communities, and operations; its ability to enforce existing contractual rights; limited infrastructure; and potential legislation that could increase its taxes or costs of operation.
“The Nigerian government is contemplating new legislation to govern the petroleum industry which, if passed into law, would likely have a significant adverse impact on Shell’s existing and future activities in that country,” it said.
Giving a breakdown of its operations in Nigeria, Shell said it produced approximately 365,000 barrels of oil equivalent per day in 2012 compared to 385,000 in 2011, while its 30 per cent interest in the Gbaran-Ubie integrated oil and gas project in Bayelsa State, yielded 0.9 billion Standard Cubic Feet per day (scf/d ) of gas.
The company said it sold its 30 per cent stake in Oil Mining Leases, OMLs, 30, 34 and 40, for a consideration of $1.1 billion (N176 billion).
Contiuing, it said, “To provide funding, Modified Carry Agreements are in place for certain key projects and a bridge loan was drawn down by the Nigerian National Petroleum Company (NNPC) in 2010. The Modified Carry Agreements are being reimbursed, and in December 2012 NNPC repaid the bridge loan with interest. New financing agreements with NNPC are under discussion and are expected to be put in place during 2013.”
ConocoPhilips, on the other hand, said its operations in Nigeria were adversely impacted in the second half of 2012 by flooding in the Niger Delta, resulting in its full year production falling to 40 million barrels of oil equivalent.
The company further stated that on December 20, 2012, it entered into agreements with affiliates of Oando Plc to sell its Nigerian business unit for a total of $1.79 billion (N286.4 billion) plus customary adjustments.
“The transaction is anticipated to close by mid-2013, following appropriate consultations with stakeholders. We received a deposit of $435 million (N69.6 billion) in December 2012, which is included in the ‘Other accruals’ line on our consolidated balance sheet and in the ‘Other’ line of cash flows from investing activities on our consolidated statement of cash flows.
“The deposit is only refundable in the event of default by us. As of December 31, 2012, the net carrying value of our Nigerian assets was $323 million (N51.68 billion),” ConocoPhilips said.
ExxonMobil contributes to local development
On its part, ExxonMobil said,“Contributing to the economic development of local communities is an important part of our business. This strategic objective is embedded into our project plans.
“In 2012, for example, ExxonMobil celebrated the completion of the first offshore structures to be designed, procured, and constructed in Nigeria. The event represented years of dedication and collaboration between joint venture partners Mobil Producing Nigeria and Nigeria National Petroleum Corporation.
“The project supports ExxonMobil’s goal to build and maintain a reliable and globally competitive supply chain wherever we operate.”