Between January and August 2023, Nigeria suffered an estimated loss of N335 million due to oil spills, as reported by the National Oil Spill Detection and Response Agency (NOSDRA).
During this period, NOSDRA documented 168 incidents of oil spills, resulting in the country losing 5,520 barrels of crude oil.
Based on an average crude oil price of $82 per barrel and the Central Bank of Nigeria’s exchange rate of N740/$1, this financial setback was calculated to be N335 million.
These oil spill incidents affected facilities operated by 23 different oil companies. Notably, Shell Petroleum Development Company accounted for the highest spill volume, with 4,340 barrels of crude oil spilled in 43 separate incidents, making up 78.62 percent of the total crude oil spilled during this period.
Heritage Energy Operational Service Limited followed closely with 24 incidents resulting in 323.20 barrels of crude oil spilled, and Nigerian Agip Oil Company recorded 248.86 barrels of crude oil spilled across 38 incidents.
Heirs Holding Oil and Gas Limited, Seplat Petroleum Development Company, National Petroleum Development Company, and Enageed Resources Limited also had their share of spill incidents.
Geographically, Rivers State experienced the most significant impact, with 2,780 barrels of crude oil spilled in 67 incidents, followed by Delta with 2,623 barrels in 76 incidents. Edo, Imo, Bayelsa, and Akwa Ibom also reported varying spill volumes.
The majority of these spills were associated with crude oil pipelines, accounting for 3,113 barrels spilled across 114 incidents.
Additionally, 1,951 barrels of crude oil were spilled from wellheads, while flow lines, flow stations, and trunk lines contributed to the rest of the spills.
NOSDRA revealed that theft and sabotage were responsible for 92.78 percent of the oil spills, totaling 5,122 barrels in 16 incidents, while corrosion caused 228.22 barrels spilled in 16 incidents.
Some of these spills occurred on land, swampy terrain, and seasonal swampy terrain, contributing to the environmental and financial challenges faced by the country.
These persistent oil spill incidents have had a substantial economic impact, resulting in significant revenue losses for Nigeria.
