CASE STUDY - Shell TNC In Nigeria

Question 1

Give 3 key facts about Shell in Nigeria

Answer 1

1. Shell produces more than 21% of the country’s total petroleum production from more than eighty fields
2. Profits hit $39.9 billion in 2022, the highest in its 115 year history
3. Africa is the 4th highest producer of oil and natural gas by Shell in 2023

Question 2

What are Shell’s main global activities?

Question 3

What are the advantages of Shell to Nigeria (host country)?

Answer 3

• Shell has the Shell foundation to help sustainability and biodiversity and help local communities
• Shell paid £20 billion in corporation tax in 2013
  -Oil refineries, ran by Shell, in Nigeria use a lot of Nigerian companies to help them run (this creates a multiplier effect)

Question 4

What are the disadvantages of Shell to Nigeria (host country)?

Answer 4

• Employees in Shell factories work long hours in poor conditions and there are suspicions of child labour use in their factories
• The profits from oil production go straight to the headquarters in the HIC.
• Gas flaring management is used to prevent gas explosions (increased atmospheric pollution)

Question 6

How are patterns of oil trade planned to change in coming years?

Answer 6

• A new West African Gas Pipeline is being planned to connect Africa through national trade and increase retained profits.
• Trans-Saharan Gas Pipeline planned