Shell Plc reported a significant rise in oil spills in Nigeria in 2024, with its subsidiary, Shell Petroleum Development Company (SPDC), recording 20 operational spill incidents over 100 kilograms—up 122% from 9 incidents in 2023. This increase was mainly due to faulty locally manufactured clamps used in pipeline repairs after illegal connections were removed. The defective clamps have since been recalled and are being replaced. The total volume of operational oil spills rose to 0.37 thousand tonnes in 2024, with 89% of the volume stemming from two major incidents on the Trans Niger Pipeline and at an offshore terminal loading buoy.
In 2024, the SPDC Joint Venture (JV) continued efforts to reduce oil spills by maintaining and upgrading pipelines. Despite these efforts, 81% of spills over 100 kilograms were caused by third-party illegal activities. The volume of spills from crude theft and sabotage rose to 2.0 thousand tonnes (84 incidents), up from 1.4 thousand tonnes (139 incidents) in 2023, indicating fewer incidents but higher volumes.To combat this, SPDC JV maintained ground surveillance, regular aerial inspections using drones and flights, and enhanced anti-theft measures on key infrastructure like wellheads and manifolds. These included protective cages, anti-theft nuts, and upgraded CCTV systems, which have improved security and spill response.In 2024, SPDC JV collaborated with government security agencies to monitor and address illegal activities along its pipelines and operational areas.
Shell highlighted Nigeria as a high-risk operating environment due to political, legal, and regulatory uncertainties, which can disrupt operations and supply chains. These risks pose potential adverse impacts on its business.Shell’s report outlines several potential risks in Nigeria, including forced asset divestment, expropriation, contract renegotiations, project delays, new taxes, and regulatory changes.
Additional concerns include trade restrictions, price controls, foreign exchange limits, and shifting environmental and compliance requirements.Globally, economic challenges, political pressures, and geopolitical instability—such as the Russia-Ukraine war and Middle East tensions—pose further risks to Shell’s operations, potentially affecting earnings, cash flow, and overall financial stability.
