Between January and August 2023, Nigeria suffered an estimated loss of N335 million due to oil spills, according to data released by the National Oil Spill Detection and Response Agency (NOSDRA). During this period, a total of 168 incidents of oil spills were reported, resulting in a loss of 5,520 barrels of crude oil. These incidents were attributed to various oil companies operating in the country.
Based on an average crude oil price of $82 per barrel and the Central Bank of Nigeria’s exchange rate of N740/$1, the calculated loss to oil spills in this period was approximately N335 million.
Among the oil firms, Shell Petroleum Development Company accounted for the highest spill volume, with 4,340 barrels of crude oil spilled in 43 incidents, constituting 78.62 percent of the total oil spilled during this period. Heritage Energy Operational Service Limited followed with 24 incidents resulting in 323.20 barrels of crude oil spilled, while Nigerian Agip Oil Company reported 38 incidents leading to 248.86 barrels of crude oil being spilled.
Rivers State was the most affected by oil spillage, with 2,780 barrels of crude oil spilled in 67 incidents, followed by Delta State with 2,623 barrels spilled in 76 incidents. Other affected states included Edo, Imo, Bayelsa, and Akwa Ibom, with varying spill volumes.
The majority of the spills occurred from crude oil pipelines, accounting for 3,113 barrels of crude oil spilled in 114 incidents. Additionally, oil companies reported spills from the wellhead, flow lines, flow stations, and trunk lines, totaling 1,951, 117.7, 110.03, and 106.13 barrels respectively.
The data revealed that theft and sabotage were the main causes of the spills, resulting in 5,122 barrels of crude oil spilled (92.78 percent of the total) in 16 incidents. Corrosion was responsible for 228.22 barrels of crude oil spilled in 16 incidents.
Notably, 2,402 barrels of crude oil were spilled on land, 2,378 barrels on swampy terrain, and 525.01 barrels on seasonal swampy terrain. The continuous battle against oil spill incidents in host communities has led to substantial revenue losses for oil firms and the country as a whole, running into billions of dollars.