Nigeria’s daily crude oil production, which currently stands at 1.5 million barrels per day, is at risk of declining due to escalating tensions between Aiteo Exploration and Production Ltd and the Nembe Kingdom community over operations on Oil Mining Lease (OML) 29.
The Nembe Creek Trunkline, which contributes 150,000 barrels per day of high-grade crude oil to Nigeria’s output, is at the heart of the conflict. Despite recent efforts by Aiteo to improve relations through the establishment of Host Community Development Trusts and engagement with community-nominated diesel contractors, the situation remains unresolved.
St. George Kumo, Chairman of the Oil and Gas Committee in Nembe, warned of potential conflict if the federal government does not intervene. He cited Aiteo’s neglect of the Nembe Independent Power Project, which was 82 percent complete when Aiteo took over OML 29 in 2015, as a major source of local frustration. Kumo also accused Aiteo of encouraging illegal bunkering by paying high prices for diesel, flaring gas, and using ocean liner vessels that disrupt local fishing activities without conducting Environmental Impact Assessments. Kumo called for environmental rights groups to support the community in addressing these issues.
Aiteo spokespersons refuted the allegations, claiming the company is addressing power supply issues by distributing diesel generators and providing 7,500 megawatts of electricity to the host communities. They also stated that oil spill cleanup efforts are ongoing in collaboration with regulatory agencies. However, Aiteo acknowledged challenges, including a 15-month production halt due to disruptions on the Nembe Creek Trunkline. The resolution of this dispute is crucial to maintaining Nigeria’s crude oil production levels and ensuring the stability of operations in the region.
Source: Daily Trust