Shell, Eni Making No Progress on Nigeria Oil Spills: Amnesty
(Bloomberg) — Royal Dutch Shell Plc is making no progress curbing oil spills in Nigeria and Eni SpA’s operations in the West African country are out of control, according to Amnesty International.
The two companies reported more than 550 spills in the southern oil-rich Niger River delta last year, compared with an average of 10 spills a year in Europe between 1971 and 2011, said Amnesty.
“These figures are seriously alarming,” Audrey Gaughran, Amnesty’s global issues director, said in a statement on Thursday. “In any other country, this would be a national emergency. In Nigeria it appears to be standard operating procedure for the oil industry.”
Nigeria produces about 2 million barrels of oil a day, more than any other African country. Spills are blamed for damaging the environment and fishing villages in the delta. Oil companies often blame sabotage and theft, a claim which local people contest.
The Italian government should investigate Eni for negligence in Nigeria, where it reported 349 spills in 2014 and 500 the year before, according to Amnesty.
Shell, the biggest oil producer in Nigeria, reported 204 spills last year, Amnesty said. The Hague-based company agreed to pay £55 million ($81 million) to the Bodo community in January for two spills in 2008 after a three-year tussle with 15,600 Nigerians, mostly fishermen, in a London court.
Precious Okolobo, a Lagos-based spokesman for Shell, and Filippo Cotalini, a Milan-based spokesman for Eni, didn’t immediately respond to e-mailed requests for comment.
ENDS
Article by Paul Wallace: 12:01 AM GMT March 19, 2015
To contact the reporter on this story: Paul Wallace in Lagos atpwallace25@bloomberg.net
To contact the editors responsible for this story: Vernon Wessels atvwessels@bloomberg.net Chris Kay, Karl Maier
19 March 2015
Royal Dutch Shell and the Italian multinational oil giant ENI have admitted to more than 550 oil spills in the Niger Delta last year, according to an Amnesty International analysis of the companies’ latest figures. By contrast, on average, there were only 10 spills a year across the whole of Europe between 1971 and 2011.
Shell reported 204 Niger Delta spills in 2014 while ENI, which operates in a smaller area, reported a staggering 349 spills.
“These figures are seriously alarming. ENI has clearly lost control over its operations in the Niger Delta. And despite all its promises, Shell has made no progress on tackling oil spills,” said Audrey Gaughran, Amnesty International’s Global Issues Director.
“In any other country, this would be a national emergency. In Nigeria it appears to be standard operating procedure for the oil industry. The human cost is horrific – people living with pollution every day of their lives.”
The companies say that these spills resulted in only 30,000 barrels – or 5 million litres – of oil spilt. However, given the very poor reporting systems used by oil companies this figure is highly likely to be a significant underestimate.
Royal Dutch Shell
The oil companies blame sabotage and theft for the vast majority of the spills. This claim is hotly contested by communities and NGOs and has been shown to be wrong.
In November 2014, during a legal action in the UK, Shell was forced to admit that it had underestimated the size of the two major Niger Delta oil spills, after years of denials.
The volume of oil spilt matters because the amount of compensation paid to affected communities is linked to the amount of oil that is estimated to have been spilt. Shell finally agreed to pay £55 million to the Bodo community in the Niger Delta after originally offering to give them a paltry £4,000.
“When a company has to pay £55 million for two oil spills it originally tried to pass off as minor, it should raise serious questions for investors about the hidden liabilities Shell may be carrying in the Niger Delta”, said Audrey Gaughran.
“If all oil spills could be scrutinised the way the two Bodo spills were then the true scale of the damage and Shell’s financial liabilities would be revealed. But this is not only about liabilities – there is a very serious human issue. Shell is cheating people out of just compensation. The Bodo case makes clear just what it takes to get this company to own up to the truth about oil spills – six years and UK court proceedings. What about all the hundreds of other communities this company has potentially cheated?”
Documents released as part of the UK legal action revealed that the company knew for years that one of its main pipelines was old and hazardous, but had failed to maintain it properly.
Additionally, a UK court ruling found that Shell has a responsibility to ensure the integrity of its pipelines.
ENI
Italian oil giant ENI, which owns the Nigerian Agip Oil Company is a smaller player in the Niger Delta than Shell and has received less attention. But the number of oil spills from its operations requires urgent action by both the Nigerian and Italian governments.
On top of the 349 spills in 2014, ENI reported more than 500 oil spills in 2013. The Nigerian regulator reported 474 oil spills from ENI operations in 2012.
“The Italian government must investigate what is happening in ENI’s Nigerian operations. These figures raises serious questions about potential negligence by the company going back many years,” said Audrey Gaughran.
“As a matter of priority all oil firms in Nigeria must urgently disclose the age and condition of their infrastructure, carry out reviews of their operating practices, and make the findings public so that communities know what is going on.”
Whatever the cause, according to Nigerian law, the oil companies are responsible for containing and cleaning up spills, and returning affected areas to their prior state. However, this rarely happens. As a result people in the Niger Delta are living with the cumulative impact of decades of pollution.
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No project will be abandoned in Nigeria, Shell says:
Naija247news.com: 19 March 2015
The Shell Petroleum Development Company (SPDC) says it is determined to complete its projects in Nigeria without fear of abandonment, in spite of challenges in its operations.
The Managing Director, SPDC and Country Chair, Shell Companies in Nigeria, Mr Osagie Okunbor, said this on Wednesday at a panel session of oil majors at the 15th Nigeria Oil and Gas Forum in Abuja.
The company had in January announced that it would cut global investment spending by 15 billion dollars over the next three years following the collapse in oil prices, causing fears about its projects in Nigeria.
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