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Shell faces big bill for oil spills
by Staff Writers
Port Harcourt, Nigeria (UPI) Aug 12, 2011

Shell fights oil spill near North Sea platform
London (AFP) Aug 13, 2011 - Anglo-Dutch oil giant Shell said Saturday it had reduced flow from a leak at one of its North Sea platforms which has left a 31-kilometre (19-mile) long oil slick off the British coast.

The leak from an undersea pipeline was discovered Wednesday after an oil sheen was spotted on the surface near the Gannet Alpha production platform, 180 kilometres (112 miles) east of Aberdeen, on the Scottish east coast.

"Shell U.K. Limited confirms the oil leak in a flow line to our Gannet Alpha platform is under control," Shell said in a statement.

"The subsea well was shut in on Wednesday and the flowline on the seabed is now isolated and depressurised. Leakage of oil has been considerably reduced."

Shell said it had deployed a robot submarine to inspect and monitor the leak.

A clean-up vessel and spotter plane have also been sent to the scene but the platform is still operating.

"The size of the sea surface affected is estimated to be some 31 kilometres by 4.3 kilometres at its widest point and the sheen is currently moving west from the field," the statement said.

"Our current expectation is it will be naturally dispersed through wave action and will not reach shore."

It added: "Shell takes all spills seriously, regardless of size and we have responded promptly to this incident."

The statement did not say how much oil head leaked but a Shell source said that "at the very most a couple of hundred tonnes" of oil had spilt into the sea.

Shell said its focus was on environmental safety and it had informed the relevant British authorities.

Oil titan Royal Dutch Shell faces a bill for hundreds of millions of dollars for two big 2008 oil spills in Nigeria's main oil-producing zone, a region devastated by 6,800 recorded spills over the last half century.

Shell reportedly has accepted liability for two spills following a 4-month legal battle in London over a suit initiated by a law firm representing the pollution-stricken communities in the Niger Delta, where some 31 million people live. Most are impoverished, living on $1 a day.

The case seems set to establish a precedent for other high-profile lawsuits against leading oil companies in other parts of the world. Chevron of the United States, for instance, is being sued for $27 billion in damages for massive pollution in the Amazon jungles of Ecuador.

Shell, which along with BP -- then known as British Petroleum -- discovered oil in Nigeria in 1956, has claimed that less than 40,000 gallons of crude oil leaked from the twin ruptures in November and December 2008 of the 50-year-old Bodo-Bonny pipeline. It pumps 120,000 barrels of oil a day across the Niger region.

But London's Guardian newspaper reported that technical experts estimate more than 280,000 barrels may have been spilled around the town of Bodo, a hub for a network of pipelines that carry oil from around 100 wells in the pollution-plagued Ogoni district.

"Experts who studied video footage of the spills in Bodo … say together they could be as large as the 1989 Exxon Valdez disaster in Alaska."

Between 260,000 and 750,000 barrels of oil leaked from the tanker after it hit a reef in the Gulf of Alaska in March 1989.

Amnesty International has estimated that if all types of oil pollution in the delta were added up over the last half century, it would "be on a par with Exxon Valdez every year over the last 50 years."

The Alaska spill was the worst environmental disaster in U.S. waters until the Deepwater Horizon oil spill in the Gulf of Mexico in April 2010, during which 4.9 million barrels of crude leaked from the offshore BP well.

The Nigerian spills in 2008 devastated the creeks and marshes around Bodo and 30 other communities. The oil has seeped into the water table and ruined farmland and fishing. No attempt has been made to clean up the oil.

The entire delta, where Shell and other international oil companies operate more than 600 oil wells, has been hit by more than 6,800 recorded oil spills since oil production began 50 years ago.

Environmental groups say these account for anywhere between 9 million to 13 million barrels of oil - twice the volume involved in the Gulf of Mexico spill.

A three-year investigation by the U.N. Environment Program completed in 2010 -- commissioned by the Nigerian government and partly paid for by Shell -- outlined the scale of the pollution crisis.

It said Shell and others had systematically contaminated 400 square miles of Ogoniland, with disastrous consequences for the tribal communities and wildlife.

The report said the people of the delta had "paid a high price" for the economic gains brought by the oil industry.

It said the spills over the last five decades will cost $1 billion and 25-30 years to rectify.

Shell and other oil companies claim that only a small fraction of the spills in Ogoniland were caused by equipment failures and negligence.

The bulk of the pollution, they say, was caused by local tribesmen stealing oil from pipelines -- these is a lucrative local trade in siphoning off crude and selling it illegally by the tankerload to neighboring states -- or sabotaging oil company pipelines.

In 2006, tribal militants launched an insurgency in the delta against the oil companies and the federal government to demand cleanups and a greater share of the oil revenue produced in their region.

That insurrection has largely been contained but not before it slashed Nigeria's oil production by about one-third -- 1 million barrels per day.

But despite the scale of the oil pollution in the delta, it has never received the attention paid to the Alaska or Gulf of Mexico catastrophes.

Exxon Mobil was ordered in 1994 to pay $5 billion in punitive damages for the Alaska disaster, although that was reduced in 2009 to $507.5 million.




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Oil spill off China bigger than first thought
Beijing (AFP) Aug 12, 2011 - A massive oil spill off China's northeast coast was far more extensive than first thought, the US oil giant behind it said in a statement Friday, pledging to clean it up by the end of August.

ConocoPhillips said more than 2,100 barrels of oil and oil-based mud -- a substance used as a lubricant in undersea drilling -- had leaked from two platforms in the oilfield it operates with a Chinese partner in Bohai Bay.

This amount is well above the 1,500 barrels the Houston-based company said on July 14 had leaked after the problem was first detected in early June.

China's government-run State Oceanographic Administration has levelled strong criticism at the fifth largest US oil company for its "inefficient and temporary" response to the disaster.

Environmental activists have also weighed in, but the China National Offshore Oil Corporation, ConocoPhillips' partner in the Bohai drilling, has largely escaped criticism.

Friday's statement, published on ConocoPhillips' website, said that "only trace amounts of oil have been found and recovered from shorelines".

"ConocoPhillips China is making significant progress on cleaning up oil-based drilling mud from the seabed," Georg Storaker, president of the company's China unit, said in a statement.

"We have already cleaned up approximately 70 percent of the mineral oil based mud on the seabed and will have the additional volume cleaned up by the end of August."

Earlier, the company said it had hoped to have the clean-up finished by August 7, but the operation was delayed by heavy seas caused by Typhoon Muifa and the discovery of additional oil on the seabed.

Fishermen in the Shandong, Hebei and Liaoning provinces that border Bohai Bay, due east of Beijing, allege that oil from the leak has killed a large part of their harvest of such seafood as scallops.

Eleven environmental groups signed an open letter to ConocoPhillips last week calling for speedier and more transparent clean up efforts.





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