Leak shuts down production of Nigeria's Nembe crude

Nigerian oil and gas company Aiteo has shut down production at its OML 29 block after a leak on its Nembe swamp, it announced June 19.

Nembe crude production from the license was 23,000 b/d in May, having fallen from a peak of 39,000 b/d in February, according to data from the Nigerian Upstream Petroleum Regulatory Commission, the country's energy regulator.

The leak was first detected on June 17, resulting in the shutdown of all fields in the onshore block, Aiteo Eastern Exploration and Production Company said in a statement.

Crude from the fields is exported to the newly licensed Nembe Crude Oil Export Terminal via the 150,000 b/d Nembe Creek Trunk Line, which is also used by Shell to evacuate some of its crude. Shell could not immediately be reached for comment on whether any of its operations were affected.

"The leak was reported on Monday, June 17, 2024, during routine operations... and all production from OML 29 shut down, Aiteo said. "This is a precautionary measure while mobilizing additional resources to contain the spill."

The company added: "While we regret the production losses to the Joint Venture and the nation 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."

Aiteo added that an investigation had been launched into the cause of the spill.

The Nembe Creek Pipeline, like the Trans Niger Pipeline, is a major target for sabotage by oil thieves.

Crude produced into the Nembe creek line has a low sulfur content and low carbon footprint grade, state oil firm NNPC said in 2023, "fitting perfectly into the required spec of major buyers in Europe."

Nigeria continues to grapple with the menace of oil theft and sabotage of oil production facilities that has impacted hugely on the country's capacity to meet its own production target of 1.7 million b/d and its OPEC output quota of 1.5 million b/d.

Nigeria's crude oil production, excluding condensates, averaged 1.28 million b/d in May, according to government estimates.