Report: 2019 Nigerian oil industry environmental performance index

Overview

The Environmental Performance Index analyses annual emissions by oil producing companies operating in the Niger Delta, the oil and gas producing region of Nigeria. This includes total emissions and comparisons between companies, states, and countries. In 2020, Nigeria was the world’s 10th largest oil producer, and according to this analysis, had the highest emissions to production ratio – by far.

Rationale

SDN works to minimise the negative impacts of Nigeria’s oil and gas, and in publishing this report, we seek to increase access to key information on the environmental performance of the industry in the Niger Delta. We aim to enable constructive engagement on the policy solutions needed to minimise the negative impact of exploration and production, and ensure its benefits are distributed fairly, and ultimately harnessed, to enable Nigeria’s transition to clean energy.

Key messages

  • Oil and gas industry pollution increased between 2018 and 2019. Contributing to continued environmental degradation and negative impacts on citizens of the Niger Delta. 
  • The volume of oil spilled was much higher than in 2018, though the number of spills was slightly lower. In total, a minimum of 36,334 barrels of oil and other potential contaminants are recorded as spilled in the Niger Delta in 2019, across 601 separate incidents. This was a 43% increase in volume, and a 50% increase in the average spill size, compared to 2018. Nearly a third of all known oil spilled was in two local government areas – Degema and Okrika – making Rivers State the highest for spills again.
  • The volume of gas flared increased slightly, and continues to be a major contributor to greenhouse gas emissions. Over 475 billion standard cubic feet (scf) of gas was flared in 2019, a 1% increase on 2018, despite decades of efforts to eliminate gas flaring. This volume is equivalent to a quarter of Nigeria’s CO2 emissions, or more than the entire emissions of Ghana. 
  • The highest total oil spill and gas flare emissions were generated by international oil companies (IOCs), namely Shell, ExxonMobil, and Eni, as well as the (then) state-owned oil company, the Nigerian National Petroleum Corporation (NNPC). These companies also have the highest production volumes.
  • In relative terms, domestic oil companies (DOCs) had higher emissions for the volume of oil they produced. Summit Oil, Brittania-U, Dubri and Excel generated by far the highest emissions per barrel of oil (or equivalent) produced. This is concerning, since DOCs are taking over operations from IOCs, at an accelerating rate. Marginal fields (individual fields carved out of larger blocks) have a particularly alarming emissions ratio. 
  • A small number of companies were responsible for the majority of absolute emissions. 98% of all recorded oil spilled is attributable to six companies (Shell, NAOC, Aiteo, Eroton, Heritage, and ND Western), while 54% of gas flared is attributable to only two (ExxonMobil and NNPC). 
  • The 2019 Index ranks Moni Pulo as the best environmental performer, and Shell as the worst. Moni Pulo was one of 19 companies with no oil spills recorded, and it had a very low gas flare volume, resulting in a low emissions ratio of 1%. In contrast, Shell had the highest oil spill volume, one of the lowest oil spill removal rates (28%), and was the sixth highest gas flarer. Shell’s emissions ratio was relatively low (2%), but the high volume of emissions means it ranks bottom for the second year running.
  • Overall, the Nigerian oil and gas industry’s environmental record compares extremely poorly with international averages. Compared to the global average, companies operating in Nigeria spilled 13 times more oil, and flared six times more gas, for every barrel of oil (or equivalent) they produced.
  • There are major discrepancies among data sources on Nigerian oil and gas issues. The national oil company reports document more than 233,000 barrels of “pipeline crude oil loss” for 2019, without further explanation. This is more than six-times higher than the data from government regulator NOSDRA’s Oil Spill Monitor (OSM), the source for this report, which recorded just over 36,000 barrels spilled. There are also differences in gas flare volumes. As such, our analysis is indicative only, but our working assumption is that the true extent of the release of emissions into the Niger Delta’s environment is much higher than officially recorded.
  • To develop a clearer picture of industry emissions in Nigeria, greater transparency from government and industry is needed. The government has not published a detailed set of production figures for the sector since 2019, and this must be revived in the interest of transparency and accountability. Companies’ own reporting should include annual accounts for emissions, disaggregated, and with a detailed description of impacts, as a minimum. Publishing this data would help inform action to address environmental concerns, and build mutual trust and accountability among all industry stakeholders. It is also essential to inform the public so they can advocate for effective policies and responses.

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