Nigeria’s oil production disrupted as Aiteo shuts down field in Bayelsa

The nation’s oil output dropped after a major oil field was forced to shut down due to oil spill. The Nembe Creek oil field, which produces roughly 150,000 barrels of crude oil per day (bpd), was shut down on June 17.

The leak occurred on the Nembe Creek Trunk Line (NCTL), a pipeline that transports oil from the field to the Bonny Oil Export Terminal. Aiteo Eastern Exploration and Production Company, the operator of the pipeline, confirmed the leak and the subsequent shutdown.

Aiteo Eastern E&P reported that the leak was discovered during routine operations in the Nembe area of Bayelsa State, one of the world’s most polluted areas due to decades of oil spills that have damaged farming and fishing.

Aiteo noted that its Oil Spill and Emergency Response Team was immediately activated, and all production from OML 29 was shut down as a precautionary measure.

Aiteo’s Group Managing Director, Victor Okoronkwo, confirmed the leak in a statement yesterday.

He said the oil leak was reported on Monday, June 17, 2024, during routine operations.

He said the company’s Oil Spill and Emergency Response Team was immediately activated and all production from OML 29 shut down.

He said: “This is a precautionary measure 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.

“During our operations on Monday, June 17, 2024, the subject leak was detected. A Joint Investigative Visit (JIV) with stakeholders has been initiated to determine the cause of this 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.

“Our joint venture partners and the relevant regulators; The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the National Oil Spill Detection and Response Agency (NOSDRA) have been notified of the incident.” He said.

The National Oil Spills Detection and Response Agency (NOSDRA) who also confirmed the oil leak incident from the Nembe Oilfields operated by Aiteo Eastern Exploration and Production Limited, said the company has already reported the leak.

The Head of NOSDRA’s field Office in Yenagoa, Mr Solomon Ukponevi, explained that the agency has deployed its officials to the spill site to ascertain the cause and volume of crude oil discharged into the environment.

The 97-kilometre Nembe Creek Trunkline NCTL) that hitherto fed the Bonny Oil Export Terminal in Rivers has since been discarded by the indigenous firm which acquired the Nembe field from Shell in 2015.

Following persistent vandalism on the oil export line with capacity to evacuated 180,000 barrels of crude daily, Aiteo resorted to using barges to coney crude from the Nembe fields.

The barges, smaller vessels are used to transport crude from onshore oil wells to a Floating Production Storage and Offloading (FPSO) vessel frmm which Aiteo exports the Nembe Crude blend to crude tankers in the Atlantic Ocean.