The NNPC/Shell joint venture lost about $240 million to crude oil vandalisation in the fiscal year 2018. About 11,000 barrels of crude oil was stolen in the year under review. This translates to 4,015,000 barrels. This figure is multiplied by the average price of crude oil for the period which was put at $73 per barrels.
According to Shell security remains a high priority due to continued crude oil theft and criminality in parts of Niger Delta, adding that Illegal third party interference are the main source of pollution as at today.
The third Party interference caused close to 90 per cent of the number of spills more than 100 kilograms from the Shell Petroleum Development Company of Nigeria Limited and n operated pipelines.
It has therefore called for stakeholders’ concerted efforts to curb the incessant vandalism of crude oil-bearing pipelines.
Highlighting the danger of continuous sabotage to people and environment, Igo Weli general manager, External Relations, Shell Petroleum Development Company (SPDC) said such efforts to curb pipeline sabotage will save lives secure communities and protect the environment.
He said: “Shell is concerned the repeated sabotage of recently repaired pipelines exposes the environment and people to renewed and worsening pollution. Oil theft is focused on short term fiscal benefits, ignoring the long-term effects of environmental degradation.”
Since 2017, sabotage spill rate has risen steeply and crude oil theft from SPDC JV’s pipeline network averaged 11, 000 barrels per day in 2018, an increase of about 20% over previous year. The number of sabotage-related spills increased in 2018 to 111 compared to 62 in 2017 and, since 2012, SPDC has removed more than 1,160 illegal theft points.”
Facilities operated by both indigenous and international oil and gas companies continues to be affected by attacks and other illegal activities such as crude oil theft. This led to disruptions to oil and gas production in 2018 particularly for indigenous producers and incident of environmental contamination.
Also speaking at the workshop, Shell’s General Manager, Safety and Environment, Chidube Nnene-Anochie, said irrespective of the cause, SPDC cleans and remediates areas impacted by spills from its facilities.”
According to Nnene-Anochie, “SPDC implements work programmes to appraise condition of, maintain and replace key sections of pipelines and flowlines. In 2018, for example, we installed 70 kilometres of pipelines and 188 kilometres of flowlines. Over the last seven years, SPDC has replaced approximately 1,300 kilometres distance of flow lines and pipelines.”
She said, “In line with industry regulations, SPDC only pays compensation if the spill is operational.”
Towards the UNEP Report-guided Ogoni Clean Up, Weli said, “SPDC actively supports the clean-up process along with other stakeholders. SPDC remains fully committed to providing its share of $900 million (N283.73 billion) over five years to the Ogoni Trust Fund as stipulated in the Hydrocarbon Pollution Remediation Project (HYPREP) gazette and the agreed governance framework.”
“The SPDC JV has completed its first-year contribution of $180 million (N54.54 billion). Early 2017, the SPDC JV made available $10 million to help set up HYPREP office and in July 2018, joint venture deposited additional $170 million (N51.52 billion) into an escrow account to fund HYPREP’s activities.”
The company said it is also collaborating with communities to effectively patrol pipelines’ rights-of-way through direct surveillance and GMoU surveillance, proactively engaging government security agencies to prevent crude theft and vandalism and carrying out awareness campaigns to educate community members, surveillance contractors and general public of the requirements of the 1990 Pipeline Act which prohibits any third-party activities 100ft from existing oil and gas right-of-way.
Olusola Bello
