Shell loses 11,000bpd to oil theft

Oil theft from Shell Petroleum Development Company (SPDC) joint venture (JV) pipeline network averaged 11,000 barrels per day (bpd) last year, its General Manager, External Relations Mr. Igo Weli, said on Thursday.

He said this is an increase of about 20 per cent over previous year. The number of sabotage-related spills increased during the same period to 111 compared to 62 in 2017 and, since 2012, SPDC has removed more than 1,160 illegal theft points.

The oil giant has called for stakeholders’ efforts to curb the incessant vandalism, highlighting the danger of continuous sabotage to people and environment. He said such efforts to curb pipeline sabotage will save lives, secure communities and protect the environment.

Weli spoke in Lagos on Thursday at a Media Workshop on Pipelines Right of Way Encroachment and Vandalism.

He said: “Shell is concerned about 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.”

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.

Nnene-Anochie said: “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. 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.”

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