Nigeria’s daily crude oil production of 1.5 million barrels per day may dip over growing tension due to disagreement 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.

It was 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.

Chairman, Oil and Gas Committee in Nembe kingdom in Bayelsa State, St. George Kumo, in a statement on Monday, warned that “history may repeat itself soon if the Federal Government fails to intervene in the cold war situation between host – Nembe Community and settlor, Aiteo.”

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

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

Kumo said the firm is encouraging bunkering activities in the area by paying N800 for a litre of diesel.

According to him, gas is still being flared just as the creeks “are now occupied by ocean liner vessels depriving the locals of their fishing rights without Environmental Impact Assessment”, warning that Aiteo should not push the Nembe man into irrational acts.

He called on environmental rights groups such as Green Peace, Friends of the Earth and others to come to the aid of the community.

When contacted, Aiteo spokesperson, Ndiana-Abasi Matthew, referred our correspondent to another official, Chioma Aleru, who described the allegations as lies.

Aleru said Aiteo is already handling the power situation by providing big and small diesel generators to the communities as the company did not want a situation where only a few communities would enjoy power supply.

She said the company is providing about 7,500 megawatts of electricity to the host communities and that diesel was supplied by contractors who were nominated quarterly by the communities.

On the issue of non cleanup of oil spills for over three years, she said regulatory agencies like the National Oil Spill Detection and Response Agency and the Nigerian Upstream Petroleum Regulatory Commission work with the firm and communities.

According to her, part of the company’s challenge was the inability to produce oil for a period of 15 months due to disruptions on the 95-kilometre Nembe Creek Trunkline. (Daily Trust)

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