Aiteo Eastern Exploration and Production Company may lose operatorship of Oil Mining Lease (0ML 29) as concerns grow over the incompetent manner the prized asset is operated by the indigenous oil firm, founded by business mogul, Benedict Peters.

OML is a large block located in the southeastern Niger Delta containing 11 oil and gas fields. The oil mining lease stretches over an area of 983 square kilometres and includes the Nembe Oil Field, Santa Barbara Oil Field and Okoroba Oil Fields. It also includes related facilities like the Nembe Creek Trunk Line (NCTL). 

Aiteo acquired the oil field during the 2015 divestment by Shell Petroleum Development Company Ltd and on September 1, that same year, effectively took over operatorship of the oil block, a Joint Venture (JV) with the Nigerian National Petroleum Corporation (NNPC).  

The facility has been prone to oil spills since Aiteo took over operatorship, prompting the host community to demand that the Nigeria Petroleum Development Company (NPDC) should take over operations of OML 29, pending when a new and competent operator would be appointed.

Exactly one-year ago, the Opu-Nembe community in Nembe-Bassambiri, Nembe Council of Bayelsa State and host to Aiteo had issued a quit notice to the oil company to leave the community immediately.

At a world press conference and protest march by the community leaders lat year, the host community accused the oil firm of “economic strangulation, ecological destruction, contract racketeering and corporate wickedness.

The traditional rulers and chiefs in the kingdom wore all-black outfits in what they said was a symbolic way to announce the company’s death and final burial in the community.

According to the host community, the incompetent manner the prized asset is operated, has caused several oil spills in our kingdom, some of which are now receiving attention from NOSDRA, following petitions from our lawyers, though they remain uncleared and unpremeditated over a year after.

“At this rate, the remnants of our ecological resources and natural livelihoods may completely vanish during the remaining two and half years of President Muhammadu Buhari’s tenure, all thanks to Aiteo, they lamented.

“Consequently, we declare as follow: that the operational licence of OML 29, held by Aiteo, having expired on June 30, 2019, notwithstanding the illegal secretive renewal by the then Minister Ibe Kachikwu, should be relinquished.

“That the Federal Government owned Nigeria Petroleum Development Company (NPDC) should take over operations of OML 29, pending when a new, competent and community friendly operator takes over…”  they said.

On November 5, Aiteo reported an “extremely high order” oil spill from its Santa Barbara Well 1 in OML 29 and attributed it to sabotage.

More than 20 days after the spill was reported, crude oil is still spewing into the environment, polluting farmhands and the creeks.

Last week, Aiteo had sought foreign technical expertise to help halt the ongoing oil spill, stating categorically it had not technical expertise to contain the oil spill.

It was gathered that about 40 communities have been impacted in the area while the escaping crude is gradually spreading towards the Kula axis in the neighbouring Rivers State.

The slow pace of response and inability of the oil firm to halt the leak almost three weeks after, has further heightened anger among stakeholders.

Reacting to the incident, Governor Douye Diri of Bayelsa State, expressed concern over the continued spillage of crude oil and called on the oil firm to expedite action to contain it.

While lamenting the attendant degradation of the environment, Diri urged Aiteo to take urgent steps at initiating remediation efforts towards ensuring that the spill at its facility was brought under control.