Shell Plc has reported a sharp rise in oil spills from its Nigerian operations, with 20 operational spill incidents of more than 100 kilograms recorded in 2024 — a staggering 122% increase from just nine incidents the previous year.
The disclosure was made in Shell’s 2024 Annual Report and Accounts, which attributes the spike largely to “a rise in cases of failure due to factory defects in a locally manufactured clamp used in pipeline repairs” following the removal of illegal connections.
The defective clamps have since been recalled and are currently being replaced by the Shell Petroleum Development Company of Nigeria Limited (SPDC), the local subsidiary.
Shell stated that the total volume of operational spills rose significantly to 0.37 thousand tonnes in 2024, compared to just 0.005 thousand tonnes in 2023. Notably, 89% of this volume came from two major spills — one onshore on the Trans Niger Pipeline and another offshore at a terminal loading buoy.
Despite the operational challenges, Shell reported that most of the spill incidents were caused by external interference. “About 81% of crude oil spill incidents of more than 100 kilograms from SPDC JV facilities were caused by the illegal activities of third parties,” the report noted.
Interestingly, while the volume of theft- and sabotage-related spills rose to 2.0 thousand tonnes in 2024 from 1.4 thousand tonnes the year before, the number of such incidents actually dropped from 139 to 84 — a sign of progress in anti-theft efforts.SPDC JV responded with intensified surveillance, including drone monitoring, improved CCTV, and the deployment of anti-theft technologies such as protective cages and anti-theft nuts.
“These measures continue to help deter theft and improve response,” Shell said.The report also emphasized the high-risk environment in Nigeria, pointing to political and regulatory uncertainties. “Shell operates in over 70 countries… [but] faces various risks from the business and operating environment in Nigeria, which could have a material adverse effect on its business,” the company stated.
The company reiterated its commitment to working with government security agencies to combat illegal activities and reduce environmental damage in the Niger Delta region.
For context, Shell also disclosed that it paid Nigeria $5.34 billion in taxes and charges in 2024 — the highest payout to any government by the company globally.
