Nigerian oil company Aiteo has halted all production at oil mining lease (OML) 29 after detecting an oil leak at its Nembe swamp facility, its Managing Director said.
Aiteo Eastern E&P reported that the leak was discovered on June 17 during routine operations in the Nembe area of Bayelsa state, located in Nigeria’s Delta region, one of the most polluted areas in the world 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 to mitigate the impact of the incident.
The company’s M.D Victor Okoronkwo said, “While we regret the production losses 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,”
The cause of the leak is still unknown. Aiteo stated that the shutdown was a precautionary measure to contain the spill.
The firm stated that its joint venture partners, along with 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.
Oil spills in the Niger Delta
In Nigeria, oil spills have had a devastating impact on communities that depend on creeks for their water supply and on farming and fishing for their livelihoods. Oil spills, often caused by vandalism or pipeline corrosion, are common in the Niger Delta. This region, characterized by a vast network of creeks and mangrove swamps, suffers from poverty, pollution, oil-driven corruption, and violence.
For many years, crude theft, pipeline attacks in the Niger Delta, and a lack of investment have led to declining output, resulting in reduced Nigerian government revenue and significant fiscal deficits. However, output has increased in recent months.
About the Nember oil field
- Last year, the NNPC and Aiteo introduced a new grade of crude called Nembe through a joint venture, as Africa’s largest oil producer increases its oil output.
- The Nembe crude stream will be managed and marketed by a joint venture between state-owned NNPC and Aiteo Eastern E&P Co. Ltd, as announced by the company. It marked the first crude marketing project to be solely managed by Nigerian entities.
- Nembe production was incorporated into the Bonny Light stream over three years ago, but incidents of sabotage on the Nembe Creek Trunk Line (NCTL) subsequently impacted output.
