Nigeria's Aiteo shuts production at OML 29 due to oil leak

2024-06-19 13:40:28

Market Screener

YENAGOA, Nigeria (Reuters) - Nigerian energy firm Aiteo has shut down all production at oil mining lease (OML) 29 after it detected an oil leak at its Nembe swamp facility, it said.

Aiteo Eastern E&P said the leak was reported on June 17 during routine operations in the Nembe area of Bayelsa state in Nigeria's Delta, one of the most polluted places on Earth after decades of spills that have hurt farming and fishing.

The cause of the leak was undetermined, Aiteo said, adding that the shutdown was a precautionary measure while it contains the spill.

Aiteo said it has notified regulators of the incident. The head of the country's oil spill detection and response agency (NOSDRA), Solomon Ukponevi, said an investigation was underway.

"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," said Aiteo Managing Director Victor Okoronkwo.

In Nigeria, Africa's biggest oil producer, oil spills have had a catastrophic impact on communities where people have no other water supply than creeks and rely on farming and fishing.

Oil spills, sometimes due to vandalism or corrosion, are common in the Niger Delta, a vast maze of creeks and mangrove swamps criss-crossed by pipelines and blighted by poverty, pollution, oil-fuelled corruption and violence.

(Reporting by Tife Owolabi; writing by Chijioke Ohuocha; editing by Jason Neely and Sharon Singleton)

2024-06-19 News