FG loses N335m to oil spillage – Report

Marcus Amudipe
Marcus Amudipe






Data from the National Oil Spill Detection and Response Agency indicates that Nigeria lost almost N335m to oil spills between January and August of 2023.

According to NOSDRA’s oil spill data for the time period in question, oil businesses in the country lost a total of 5,520 barrels of crude oil due to 168 oil spill occurrences over the course of eight months.

The projected loss to the country due to oil spill during the period under review was N335m, based on an average price for crude oil during the period of $82 per barrel and the Central Bank of Nigeria’s exchange rate of N740/$1.

The agency found that the leak happened at the facilities of 23 oil companies, with Shell Petroleum Development Company having the greatest spill volume with 4,340 barrels of crude oil spilled across 43 events, accounting for 78.62% of the total crude oil spilled during the study period.

As a close second, Heritage Energy Operational Service Limited had 24 spills totaling 323.20 barrels of crude oil, while the Nigerian Agip Oil Company had 38 spills totaling 248.86 barrels of crude oil.

Heirs Holding Oil and Gas Limited polluted the environment with the spillage of 128.10 barrels of crude oil in six spill incidents; Seplat Petroleum Development Company polluted the environment with the spillage of 104.88 barrels in seven spill incidents; National Petroleum Development Company polluted the environment with the spillage of 92.33 barrels in sixteen spill incidents; and Enageed Resources Limited polluted the environment with the spillage of 72 barrels of crude oil in three spill in

NOSDRA reported that 2,780 barrels of crude oil were spilled in 67 incidents in Rivers State; 2,623 barrels were spilled in 76 incidents in Delta State; and 70.04 barrels, 22.30 barrels, 18.39 barrels, and 1.06 barrels were spilled in Edo State, Imo State, Bayelsa State, and Akwa Ibom State, respectively.

The majority of the spill occurrences were reported from crude oil pipelines, the environmental authority added, with 3,113 barrels of crude oil spilled in 114 incidents.

It went on to say that in eight separate occurrences, oil companies spilled a total of 1,951 barrels of crude from the wellhead, 117.7 barrels from flow lines, 110.03 barrels from flow stations, and 106.13 barrels from trunk lines.

In addition, NOSDRA claimed that theft and sabotage accounted for 5,122 barrels of crude oil (or 92.78 percent) spilled during the eight-month period, while corrosion accounted for the loss of another 228.22 barrels of crude oil in 16 separate occurrences.

An additional 2,402 barrels of crude oil leaked onto dry ground, 2,378 barrels leaked onto wetland areas, and 525.01 barrels leaked onto seasonal wetland areas, according to the report.

As a result of persistent oil leak accidents in the communities where oil companies operate, the oil industry has lost billions of dollars in income.

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