Nigeria’s crude oil production has taken a hit following the shutdown of operations at OML 29 in Nembe, Bayelsa State, after an oil spill was detected at Aiteo Eastern Exploration and Production Company’s (AEEPCO) Nembe Creek loading facility.
Aiteo, the operator of the NNPC/Aiteo Joint Venture, confirmed the incident in a statement by its Media Officer, Ndiana-Abasi Matthew, stating that the leak was discovered on Monday, June 17, 2024, during routine operations.
Precautionary Shutdown and Emergency Response
As part of its emergency response, Aiteo activated its Oil Spill and Emergency Response Team and immediately shut down production from OML 29 as a precautionary measure.
“The cause of the spill is currently undetermined. However, we are proactively engaging with stakeholders to mitigate the immediate effects,” the company stated.
Aiteo’s Group Managing Director, Victor Okoronkwo, confirmed that the company has notified all relevant regulatory institutions and has commenced a Joint Investigative Visit (JIV) to assess the situation and determine the cause of the spill. The JIV includes representatives from:
•Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
•National Oil Spill Detection and Response Agency (NOSDRA)
•Local community leaders and other stakeholders
The investigation was scheduled for Wednesday, June 19, 2024.
Environmental and Economic Impact
The shutdown of OML 29 is expected to impact Nigeria’s overall crude oil production, given the field’s strategic importance in the Niger Delta. Aiteo acknowledged the economic and environmental consequences, stating:
“We regret the production losses to the Joint Venture and the nation, as well as the potential environmental impact. Our 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.”
Cause of the Spill: Collision Between Vessels?
While the official cause of the spill is still under investigation, the Chairman of the Oil and Gas Committee in Nembe Kingdom, St. George Kumo, claimed that the leak resulted from a collision between two vessels, one of which was loading crude oil at the time.
According to Kumo, the spill has spread to Okpoama in Brass Local Government Area, severely affecting fishing and other economic activities in the region.
Aiteo’s Growing Challenges in Nigeria’s Oil Sector
Since acquiring OML 29 from Shell in 2015, Aiteo has faced significant operational challenges, from persistent vandalism on the Nembe Creek Trunkline (NCTL) to oil spills and production disruptions. The company previously abandoned the NCTL pipeline due to sabotage, opting instead for barge transportation to export its crude oil.
With this latest oil spill adding to its challenges, Aiteo’s response and the outcome of the Joint Investigative Visit will be closely watched as the company works to restore operations and minimize environmental damage.
