5 months ago
9
Aiteo
Nigeria’s struggling oil production is facing another crisis as the Eastern Exploration and Production Company (AEEPCO) shuts down its oil mining licence 29 in Nembe, Bayelsa State, over a crude oil leak.
The facility operated under the NNPC/Aiteo Joint Venture, according to a release from Aiteo, was shut down on Monday this week following a leak detected during routine operations.
While Nigeria’s oil production dropped further last month, far from the projected 1.78 million barrels per day for the 2024 budget, the prevailing development would further shrink the country’s earnings from oil production.
Aiteo said AEEPCO’s Oil Spill and Emergency Response Team had been activated, and all production from OML 29 was shut down as a precautionary measure.
While OML 29 reportedly has 11 oil and gas fields, of which four are producing, the output currently stands at over 120,000 barrels.
Aiteo said resources are being mobilised to contain the spill, adding that the cause of the leak is yet to be undetermined Commenting on the development, AEEPCO’s Group Managing Director, Victor Okoronkwo, said a Joint Investigative Visit (JIV) with stakeholders has been initiated to determine the cause of the incident.
“While we regret the production losses to the Joint Venture and the nation and 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,” he said.
The company, all its joint venture partners and the relevant regulatory bodies, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the National Oil Spill Detection and Response Agency (NOSDRA) have been notified about the incident.
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