shell - Royal Dutch/Shell Co Background Founded in 1890 by...

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Royal Dutch/Shell Co Background • Founded in 1890 by Aeilko Jans Zijlker, after he accidentally discovered pools of oil in the Dutch East Indies • 1907 Royal Dutch merged with UK based Shell Transport and Trading • Royal Dutch would handle all oil refining and production operations and Shell would transport, store, and market the resulting oil products. • Royal Dutch and Shell were separately traded companies who owned 60% and 40% of the Foyal Dutch/Shell Group’s operating subsidiaries • Emerged as a leader in their market after WWII • 1991 o Group’s revenues reached $103B, making it the largest oil co in the world. o Operating in 130 countries and had some 101K employees. Royal Dutch/Shell in Nigeria • 1937 – Shell and British Petroleum were given exclusive right to prospect for oil • Partnership with Shell and BP became a 3 way joint venture in 1973 when the Nigerian govt took a 35% stake – o Equity held by govt was called Nigerian National Petroleum Corp (NNPC) and Shell’s was held by the Shell Petroleum Development co of Nigeria Limited (SPDC) • 1979 o Nigerian govt appropriated BP’s 20% of the JV o Seen as a response to UK govt’s policies toward Southern Africa • 1988 o Nigerian govt gave minority stakes in the JV to Elf and Agip, European oil companies • 1995 o NNPC owned 55% of the SPDC operated JV, whereas Shell owend 30%, Elf 10%, and Agip 5% o Nigerian “take” was higher than any other govt in the world o Nigerian govt also set up JVs with other multinational oil companies including Chevron, Mobil, and Texaco • Mid 90’s o SPDC operated venture controlled about 60% of Nigeria’s known oil reserves and employed 5K ppl, 270 or who were not Nigerian. o Produced about 930K barrels of oil a day from 94 oil fields over a network of 6,200
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shell - Royal Dutch/Shell Co Background Founded in 1890 by...

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