Nigeria Loses N1.05bn To Oil Spillage As Shell Tops Incidents

ANALYSIS: Nigeria Loses N146m To Oil Spillage As Vandalism Rises
ANALYSIS: Nigeria Loses N146m To Oil Spillage As Vandalism Rises

Shell Petroleum Development Company (SPDC), the operator of Nigeria’s main onshore oil and gas joint venture, recorded the highest volume of oil spillage in Nigeria since 2019 till date.

Nigeria has suffered 905 oil spill incidents, according to data obtained by BizWatch Nigeria on Monday from the National Oil Spill Detection and Response Agency (NOSDRA).

The volume of crude oil lost during this period amounted to a loss of 43,694.04 barrels of crude oil.

Shell, however, accounted for 43.16 percent of the total loss of crude oil during these incidents, as the company lost 18,860.19 barrels of crude oil from 2019 till March this year.

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The oil spill incidents over the years have led to the destruction of farms, contamination of water and total stoppage of the means of livelihood of people living in the host communities in the Niger Delta region.

Using Brent crude oil price of $63 per barrel as of Sunday and an average exchange rate of N380 to a dollar, the loss of 43,694.04 barrels of crude oil translated to a loss of $2.75 million or naira equivalent of N1.05 billion for the country.

In the oil spill by company category, NOSDRA data showed that Shell recorded the highest volume of oil spill incidents during the period under review, with 18,860.19 barrels of crude oil spilled in 366 incidents.

The company over the years have struggled to contain spills in the Niger Delta region caused due to operational incidents, theft and sabotage despite reiterating its commitment to minimizing spill and cleaning it up.

Eroton Exploration and Production Limited followed with 8,536.55 barrels of crude oil spilled in 36 incidents and Aiteo Exploration and Production with 13 incidents that led to 3,668.53 barrels of oil spills.

Heritage Energy Operational Service Limited recorded 41 incidents in which a total of 3572.99 barrels of crude spilled into the surrounding environment while ND Western recorded 26 incidents and 3,412.01 barrels of soiled crude oil during the period under review.

Nigerian Agip Oil Company (NAOC) followed with 3,404.82 barrels of spilled crude oil in 214 incidents  and National Petroleum Development Company (NDPC)  followed with 1,133.54 barrels of spilled crude oil in 12 incidents.

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OTHER SPILLAGES

First Hydrocarbon Nigeria recorded 237.24 barrels of crude oil spillage from 2019 till date.

Total Exploration and Production Nigeria, Seplat Petroleum Development Company Limited, OVH Energy Marketing Limited and Pipeline Product Marketing Company (PPMC) spilled 76.82 barrels of crude oil in 11 incidents, 102.16 barrels of crude oil in 32 incidents, 100.63 barrels of crude oil in one incident and 100 barrels in six incidents, respectively.

In addition, Mobil Producing Unlimited recorded 27 oil spill incidents with only 1.26 barrel of crude oil spilled, while Chevron Nigeria Limited recorded 33 incidents with 35.68 barrels of spilled crude oil.

In January this year, farmers in the Niger Delta region received a court judgement in their favour against Shell Nigerian for widespread pollution on their land after 13 years of legal battle.

An appeal court in The Hague passed a judgment compelling Shell’s Nigerian branch to settle farmers affected by oil spillage that its exploration activities caused.

It also held the Anglo-Dutch parent company, Royal Dutch Shell, liable for installing new pipeline equipment to prevent further devastating spills in the Niger Delta region.

The amount of damages would be determined later, it said. It did not specify how much the four farmers would receive as compensation.

The plaintiffs, consisting of four Nigerian farmers first sued Shell 2008 over pollution in their villages Goi, Oruma and Ikot Ada Udo, in Southeastern Nigeria, in a case backed by the Netherlands arm of environment group, Friends of the Earth.