Oil companies lose N803bn to sabotaged pipelines in 2022, highest in 3yrs

The National Oil Spill Detection and Response Agency (NOSDRA) has revealed that oil companies in Nigeria lost N803 billion worth of crude oil to spills suspected to emanate from sabotaged pipelines and operational issues in 2022.

The amount recorded is the highest in the last three years data from the oil spill agency showed.

A breakdown from NOSDRA data disclosed that oil companies recorded a N362 billion loss in 2020 and N674 billion in 2021.

The increase in pipeline vandalism and oil theft occurred the most in 2022, as the country saw its oil output dip below 1 million barrels per day (bpd) in August and September.

According to a statement by the agency, oil spills are caused by breaks in ageing or poorly maintained infrastructure, accidents, vandalism, and other incidents.

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“In the past 10 years, a number of spills have also been caused by oil theft, also known as bunkering. This is where oil is stolen from pipelines and then shipped to local or international markets,” it said.

“There has also been an increase in artisanal refining when camps in the mangrove refine crude for local or other needs. These are unregulated and so can cause serious pollution.”

On penalties for the oil spills, the agency said there are no legally binding regulatory penalties or fines for oil spills in Nigeria.

“Currently oil companies are required to fund the clean-up of each spill and usually pay compensation to local communities affected if the spill was the company’s fault,” it said.

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