Shell Pipeline Leak at Singapore's Bukom Island

An oil leak from a Shell-operated pipeline was reported early on October 20, 2024, at approximately 5:30 AM SGT. The leak occurred on a land-based pipeline connecting Bukom Island and Bukom Kecil. Singapore's Maritime and Port Authority (MPA) was alerted to the incident at 1:00 PM SGT and took immediate steps to contain the oil spill.

Clean-Up Under Control

Shell responded by placing containment booms at the site and deploying vessels equipped with dispersants to manage the oil seen in the vicinity. The leak has been stopped at its source, and clean-up operations are ongoing. By 6:00 PM SGT, no new oil sightings were reported.

The MPA has deployed seven craft equipped with dispersants in collaboration with contractors and uses drones and satellite technology to monitor the situation. No disruptions to navigation have been reported, and the Port Operations Control Centre has issued advisories to vessels passing near the affected area.

Previous Leaks - Shell’s Environmental Record

Shell has faced scrutiny over several environmental incidents in various locations globally. In 2011, a major leak from its Gannet Alpha platform in the North Sea led to one of the worst oil spills in UK waters in over a decade. More recently, Shell has committed to improving its environmental standards, but incidents like the Bukom leak raise questions about the company’s ability to manage operational risks.

• Gannet Alpha Platform, North Sea, UK (2011)
  • One of the worst oil spills in UK waters in over a decade, leaking over 200 tons of oil.
• Brent Charlie Platform, North Sea, UK (2020)
  • A spill was reported after a routine inspection, with hundreds of barrels of oil leaked into the sea.
• Niger Delta, Nigeria (Multiple incidents)
  • Shell has been involved in numerous oil spills in the Niger Delta, with one of the most significant spills in 2008/2009 affecting Bodo Creek.
• Forcados Terminal, Nigeria (2016)
  • A large oil spill occurred at this major oil terminal, affecting the surrounding coastal communities.
• Bukom Island, Singapore (2020)
  • Two notable spills occurred at Shell’s refinery and storage facility, one in 2020.
• Bonga Offshore Oilfield, Nigeria (2011)
  • A spill from a floating oil production facility leaked around 40,000 barrels of oil into the ocean.

Economic Cost to Shell

Nigeria (Niger Delta)

• Bodo Community Settlement (2015): Shell agreed to a $83 million settlement with the Bodo community in Nigeria over two major oil spills in 2008 and 2009. This was one of the largest payouts for oil spill damages in Nigeria.
• Ogoni Clean-Up (Ongoing): Shell is also responsible for funding the clean-up of the Ogoni region of the Niger Delta, an area heavily polluted by oil spills over several decades. While Shell has committed $1 billion to the clean-up, progress has been slow, and the long-term costs are expected to be much higher.

North Sea (Gannet Alpha Platform Leak, 2011)

• Shell faced extensive clean-up costs after the Gannet Alpha platform spill, which leaked over 200 tons of oil into the North Sea. The exact clean-up figures were not disclosed, but the incident increased scrutiny and regulatory costs, with Shell investing heavily in the region’s spill prevention and safety measures.

Billions Spent on Clean-Up Operations

While exact figures for Shell’s oil clean-up costs are not fully disclosed, estimates suggest the company has spent billions of dollars globally on clean-up operations, fines, and compensation related to oil spills. In addition to immediate clean-up costs, Shell faces long-term liabilities and continues to invest in spill response and prevention technologies.

With ongoing monitoring and cleanup efforts, Shell and the MPA continue to work together to mitigate the effects of this latest spill. This incident serves as a reminder of the environmental risks associated with oil transportation and the need for robust safety measures in energy production and shipping.

Shell’s net worth, or market cap, is $208.63 billion as of September 2024.