Nigeria’s crude oil production falls as Aiteo shuts down Nembe oilfields

Nigeria’s crude oil production has experienced a decline following the shutdown of oil production in the Nembe oilfields by Aiteo Eastern Exploration and Production Company, the operator of the NNPC/Aiteo Joint Venture on OML 29.

In a statement on Wednesday, Aiteo Media Officer Ndiana-Abasi Matthew confirmed an oil leak at the company’s Nembe Creek loading facility, was detected on Monday evening. The statement noted,

“The leak was reported during routine operations on Monday, June 17, 2024. AEEPCO’s Oil Spill and Emergency Response Team was immediately activated, and all production from OML 29 was shut down.”

Aiteo described the shutdown as a precaution while mobilizing additional resources to contain the spill. “The cause of the spill is currently undetermined. However, we are proactively engaging with stakeholders to mitigate the immediate effects,” the company added.

Victor Okoronkwo, Aiteo Group Managing Director, stated that the leak was discovered during operations on Monday. Relevant institutions have been notified, and a Joint Investigative Visit (JIV) with stakeholders has been initiated to determine the cause of the incident.

The JIV, scheduled for Wednesday, involves the Nigerian Upstream Petroleum Regulatory Commission, the National Oil Spill Detection and Response Agency, community members, and other stakeholders.

The company expressed regret over the production losses to the Joint Venture and the nation, as well as the potential environmental impact.

“Our current priority is to expedite an efficient spill management process in line with regulatory standards and collaborate with all stakeholders to restore production and mitigate associated risks,” Aiteo stated.

Meanwhile, St. George Kumo, Chairman of the Oil and Gas Committee in Nembe Kingdom, attributed the spill to an accidental collision between two vessels, one loading crude oil at the time.

Kumo reported that the spill has spread to Okpoama in the neighbouring Brass Local Government Area, paralyzing fishing and other economic activities in the region.