Oil Spill: Shell Incidents Increased By 100 Per Cent In One Month — Report

Oil Producers Shell Petroleum announced that the number of oil spill increased month over month (MoM) by 100% to 12 in February 2023 from the six spills reported in the month before in January 2023.

Also, when compared year over year, YoY, the number of events increased by 33.3% from nine in February 2022 to 12 in February 2023.

The development—which experts primarily ascribe to sabotage—ended with the loss of commercial quantities of crude oil, having an effect on both the economy and the environment.

The incidents happened at various locations, including the Yokri well flowline at Yokri, the Ogale-Bomu pipeline at Kpite, the Rumuekpe Nkpoku pipeline at Ibaa, the Kolocreek-Rumuekpe pipeline at Odau, and the Gbaran flowline at Opolo during the period, according to Shell Petroleum's most recent data on oil spills.

In its Briefing Notes, the company, stated: “Shell Companies in Nigeria have a track record of strong production but in 2021, the combined production from the SPDC Joint Venture, JV, and SNEPCo (Bonga) fell to 493,000 barrels of oil equivalent per day from 614,000 in 2020.

“The SPDC JV produced 383,000 barrels of oil equivalent in 2021, compared with 497,000 barrels of oil equivalent in 2020.

"The fall in output was largely a result of curtailed oil production because of heightened security issues, such as crude oil theft and illegal oil refining. 

"Production numbers were also down as a result of divestment action, including the sale of SPDC’s 30% interest in OML 17 for $533 million.

“In the last quarter of 2021, crude oil theft from pipelines across the region increased ostensibly as a result of rising oil prices, which made the activity more profitable.

"Security risks have heightened and production in some areas has been put on hold. 

"The situation is impacting operators across the Niger Delta.

"The Nigerian National Petroleum Corporation, NNPC, has reported that crude thefts in 2021 reached 200,000 barrels per day – a quarter of onshore production.

“The SPDC JV declared a force majeure on its Bonny export programme with effect from March 3, 2022.

"The declaration of force majeure was on account of significantly lower deliveries of crude oil to the Bonny Terminal because of theft from illegal connections to pipelines.

“Offshore in the deep waters of the Gulf of Guinea, production at SNEPCo’s Bonga field continued steadily but not without its own challenges.

"Production fell to 110,000 barrels of oil equivalent per day from 117,000 barrels in 2020.

"This was because of repairs on two production lines in 2021.

“The five-year average production for SPDC and SNEPCo is 606,000 barrels of oil equivalent per day. We have announced our intention to reduce our involvement in onshore oil and gas production in Nigeria and to focus future investment on our deep-water and gas positions.

"This aligns with Shell’s Powering Progress strategy. We are in discussion with the Nigerian government and other stakeholders on how this can be best achieved.”

The National President of the Nigerian Oil and Gas Service Providers Association, Mazi Colman Obasi, commented on the incident in a telephone chat with Vanguard over the weekend and urged the government to take action against oil theft and other vices in the sector.

“The incoming administration should work towards the tackling of many vices in the oil and gas industry, especially pipeline vandalism, oil theft, and illegal refining that have already culminated in losses of commercial oil, revenues, and environmental pollution.

“Much conscious effort should be made to stimulate and sustain the development of communities in order to create sustainable peace for oil and gas operations in the Niger Delta and other emerging petroleum-bearing states.”

Parallel to this, Dr Muda Yusuf, the director of the Centre for the Promotion of Private Business, urged the government to fight an unrelenting campaign against oil theft in Nigeria in his economic plan for the next administration.