Victor Ezeja
Aiteo Eastern Exploration and Production Company (AEEPCO) has announced resumption of oil production after days it stopped due to a spill in its Oilfield in Nembe, Bayelsa State.
The reopening, followed a joint investigative visit to the spill site by all stakeholders, the company said in a statement released on Saturday.
Join our WhatsApp ChannelAEEPCO is the operator of the NNPC/Aiteo Joint Venture on OML 29.
Prime Business Africa had reported that the indigenous oil firm had on 17 June, announced shutdown of production after the oil leak that occurred on the Nembe Creek Trunk Line (NCTL), a pipeline that transports oil from the field to the Bonny Oil Export Terminal.
As required by the regulations, authorities including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the National Oil Spill Detection and Response Agency (NOSDRA), among others, were to visit the site to assess the spillage and level of impact.
AEEPCO’s Group Managing Director, Victor Okoronkwo, said a comprehensive assessment of its operations and assets on the oilfield had been conducted, adding that it was resolved that they would resume production while continuing other statutory spill management protocols concurrently.
READ ALSO: NNPCL, Aiteo Launch Nembe Crude Oil Grade
The company said: “After a comprehensive evaluation of our operations and infrastructure at the Nembe Swamp Field, we are delighted to confirm the resumption of production activities.
“Our dedicated team has worked diligently to address the issues caused by the recent incident and implemented enhanced safety protocols to prevent future occurrences.
“We have engaged with regulatory bodies, local communities, and stakeholders to ensure transparency and accountability throughout this process.”
The shutdown of the OML 29 that produces up to 150,000 barrels of oil per day had posed a threat to oil production in Nigeria.
Nigeria has struggled to increase oil output for years now, an ugly trend that has been attributed to oil theft vandalism and deteriorating oil infrastructure in the Niger Delta.
The country has not been able to meet the Organisation of Petroleum Exporting Countries (OPEC) production quota.
A look at oil production data for this year, published by the NUPRC, shows fluctuation in output. From 1.42 million bpd in January, oil production dropped to 1.32 million bpd in February and further dropped to 1.23 million bpd in March. It rose slightly to 1.28 million bpd in April but dipped again to 1.25 million bpd in May 2024.
When compared to OPEC quota of 1.58 million bpd, oil production is short of 0.33 million bpd or 20.9 per cent deficit.
As oil remains major foreign exchange earner for Nigeria, increasing oil production to boost revenue remains imperative.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
