Nembe-Aiteo Conflict Puts Nigeria’s 150,000 bpd Oil Output at Risk

Nigeria’s oil production, a critical pillar of its economy, faces a significant threat as a dispute between the indigenous Nembe community and the oil firm Aiteo Eastern E&P Company Ltd. escalates.

The conflict, centred in the Nembe Creek area, jeopardizes the daily production of approximately 150,000 barrels of crude oil, exacerbating concerns in a market already sensitive to supply disruptions.

The Nembe Kingdom, which hosts Oil Mining Licence 29 (OML 29), has issued a stark warning through George Kumo, Chairman of its Oil and Gas Committee.

George Kumo accused Aiteo of neglecting its obligations to the Nembe community. He specifically pointed out that Aiteo abandoned the nearly completed Nembe Independent Power Project, which they inherited from Shell in 2015.

Kumo also accused Aiteo of violating the Local Content Act and environmental regulations, and of disregarding the community’s well-being.

He criticized Aiteo for not cleaning up after the major oil spill at the Santa Barbara Well 01 in November 2021, which severely damaged the local environment.

The Nembe community also raised concerns about ongoing gas flaring and the presence of large vessels that obstruct their fishing activities. Kumo urged the Nigerian National Petroleum Corporation (NNPC) and environmental rights groups to step in.

In response, Aiteo denied these allegations. A company spokesperson claimed they are addressing the power issues with temporary generators and providing diesel through contractors selected by the community.

Aiteo stated that they deliver 7,500 megawatts of electricity and are working closely with regulatory bodies on oil spill management.

Tensions have been rising between Aiteo and the Nembe community since 2021, following the community’s claims about the oil spill.

In November 2021, Nembe suffered one of Nigeria’s most severe oil spills in recent history. The spill lasted over a month, releasing more than a hundred thousand barrels of oil into the environment, according to experts.

As a result of the spill, the Nembe community filed a lawsuit demanding an environmental audit of the oil field’s impact and the fulfillment of social obligations by the operator of the oil block.