Nigeria’s oil production faced a significant disruption this week as the Nembe Creek oil field, a major production site contributing roughly 150,000 barrels of crude oil per day, was shut down following the discovery of an oil leak. This incident at the Nembe Creek Trunk Line (NCTL), which is essential for transporting oil to the Bonny Oil Export Terminal, has raised concerns about the potential environmental and economic impact.
The leak was detected on June 17, 2024, during routine operations within the Nembe area of Bayelsa State, located in the Delta region—known as one of the world’s most polluted due to enduring oil spill damage that has adversely affected farming and fishing sectors over decades.
Aiteo Eastern Exploration and Production Company, the operator managing the pipeline and the oil field, confirmed the shutdown was a direct response to the leak. In an immediate effort to manage the situation, Aiteo’s Oil Spill and Emergency Response Team was activated, and all production from the Oil Mining Lease (OML) 29 was halted as a precautionary step to stop further damage.
Victor Okoronkwo, the managing director of Aiteo, emphasized the severity of the situation. “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,” he stated.
The exact cause of the leak remains undetermined, with ongoing investigations to ascertain the source and prevent future occurrences. The shutdown, described by Aiteo as a necessary measure to contain the spill, underscores the challenges facing Nigeria’s oil industry, which is prone to environmental issues due to aging infrastructure and operational hazards.
Aiteo also reported that it has informed its joint venture partners and relevant regulatory bodies, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the National Oil Spill Detection and Response Agency (NOSDRA), about the incident. This step is part of a broader effort to ensure transparency and coordinated response to the spill.
The shutdown of the Nembe Creek field is more than an operational setback; it represents a significant loss in daily oil output for Nigeria, which could have broader implications for the national economy and global oil supply chains. It also brings to the forefront the ongoing environmental challenges in the Niger Delta region, where oil spills have historically devastated local ecosystems and communities.
Efforts are now focused on containing the spill, assessing its environmental impact, and restoring safe operational conditions. The industry and local communities are keenly awaiting updates on the progress of these efforts and the potential timeline for resuming production.
