Nigerian oil production disrupted as Aiteo shuts down 150,000 bpd field

Nigeria’s oil output dipped after a major oil field was forced to shut down due to oil leaks. The Nembe Creek oil field, which produces roughly 150,000 barrels of crude oil per day (bpd), was shut down on June 17 2024.

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 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.

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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.

“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,” Victor Okronkwo, the company’s managing director said.

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.