Yemisi Izuora
Oil major, Shell is calling for concerted efforts to mitigate losses caused by oil theft and damage to natural environment.
Shell identified third-party interference and crude oil theft as a continuing challenge, noting that 81 per cent of spill incidents in 2024 were caused by sabotage, aside equipment failures.
Shell Plc reported a significant 122 per cent increase in operational oil spill incidents in Nigeria in 2024, driven largely by equipment failures and persistent sabotage, according to its newly released 2024 Annual Report and Accounts.
The Company however highlighted ongoing collaboration with Government Agencies to maintain surveillance and secure the pipeline network and operational areas.
“The Shell Petroleum Development Company of Nigeria Limited
(SPDC) JV continued to work closely with authorities to address third-party interference, particularly along our pipelines,” the report stated.
Shell reiterated its commitment to reducing environmental impact through proactive infrastructure upgrades and improved response systems, while also calling for stronger enforcement against crude oil theft and pipeline vandalism issues that have plagued Nigeria’s energy sector for years
The company’s Nigerian subsidiary, SPDC, which operates the SPDC Joint Venture (JV), recorded 20 oil spill incidents exceeding 100 kilograms during the year up from just 9 incidents in 2023.
The report attributed the surge in operational spills primarily to defective pipeline clamps.
These clamps, which were locally manufactured and used in pipeline repairs after the removal of illegal connections, were found to have factory faults.
Shell confirmed that the manufacturer has since recalled the faulty batch, and SPDC has begun replacing the affected components.
As a result, the volume of operational oil and product spills spiked to 0.37 thousand tonnes, compared to just 0.005 thousand tonnes recorded in the previous year.
Two major spills one onshore along the Trans Niger Pipeline and one offshore at a terminal loading buoy accounted for 89 per cent of the total volume.
SPDC JV has said it is implementing a comprehensive pipeline maintenance and replacement program aimed at reducing such incidents in the future.
Beyond equipment failures, Shell identified third-party interference and crude oil theft as a continuing challenge, noting that 81% of spill incidents in 2024 were caused by sabotage.
There were 84 theft- or sabotage-related spills totaling 2,000 tonnes of crude oil in 2024, compared to 139 such incidents amounting to 1,400 tonnes in 2023.
While the number of incidents declined, the volume spilled increased, indicating that larger-scale breaches may have occurred despite improved surveillance and protection measures.
Shell’s report highlighted ongoing efforts to combat vandalism and protect infrastructure.
The SPDC JV continued to deploy aerial surveillance, drone monitoring, and on-ground patrols to detect and respond to illegal activities and spills more rapidly.
Key anti-theft protection measures were further enhanced in 2024, including:
Reinforced wellhead and manifold cages, Use of anti-theft nuts, Upgraded CCTV systems and networking technologies.
It will be reported that the SPDC has been acquired by Renaissance Africa Energy Holdings.The deal, finalized on March 13, 2025, marks the end of Shell’s nearly century-long onshore operations in Nigeria.
The acquisition was valued at $2.4 billion, including an initial payment of $1.3 billion and additional amounts for outstanding receivables and cash balances.
SPDC’s onshore assets, including acreage in the Niger Delta, are now controlled by Renaissance and is now rebranded as Renaissance Africa Energy Company Limited.