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Nigeria’s oil production at risk as host community threatens action

Nigeria’s daily crude oil production of 1.9 million barrels per day may dip over growing tension between Aiteo Exploration and Production Ltd and its host community, Nembe Kingdom on OML 29.

The Nembe Creek Trunkline contributes 150,000 barrels per day of higher-grade crude to the daily oil production figures. The crude was formally launched in November last year as Nembe Crude Oil Grade distinguishing it from the Bonny Light Crude Oil Grade.

PUNCH Online gathered that the growing faceoff is despite the recent inauguration of Host Community Development Trusts for communities in the Nembe oilfields by Aiteo and the engagement of community-nominated diesel contractors.

A statement by the Chairman, Oil and Gas Committee, Nembe Kingdom, St. George Kumo, on Monday, warned that “History may repeat itself soon if the Federal Government fails to intervene in the cold war situation between the host – Nembe Community and the settler, Aiteo.”

 
 

Kumo said Aiteo has among other things left a very bitter pill hanging in the throat of the Nembe people due to the neglect and abandonment of the Nembe Independent Power Project.

The power project which was started by SPDC was at 82 per cent completion when Aiteo inherited the assets of OML 29 in 2015, but nothing has been done on the project ever since.

Kumo lamented, “Aiteo Eastern E&P Co Ltd, operator of OML 29 field in Nembe, Bayelsa State, inherited the project from Shell Petroleum Development Company Ltd in 2015 at 82% completion stage. Most unfortunately, the project has since been abandoned and forgotten by Aiteo management.”

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