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NEMBE SPILL: AITEO Mobilizes To Clean Up SBAR SPILL, Collaborates With Renowned ‘BOOTS & COOTS, CNA

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• CEO, Benny Peters Assures Affected Communities of Speed, Ecosystem Protection.

Two weeks after a non-producing wellhead in the NembeLocal Government Area of Bayelsa State leaked and is still spewing its contents, the operators of the NNPC/Aiteo Joint Venture of Oil Mining Lease (OML) 29, Aiteo Eastern Exploration and Production Co. (AEEPCo), have announced several proactive measures to combat and contain the spill.

The wellhead, located in the Santa Barbara Southwest field in Nembe LGA, was, according to AITEO, predominantly dormant. The leak started on November 5. According to Ndiana Mathew, spokesperson for AITEO, said that upon noticing the leak, “Aiteo notified all relevant regulatory agencies and, thereafter, mobilised containment resources to limit the impact on the environment. As required, Aiteo promptly called for a Joint Inspection Visit (JIV). Due to the high-pressure effusion, the JIV team could not reach the location and that inspection was aborted.”

“Since then, Aiteo has activated an elaborate and extensive spillage containment response in the internationally prescribed manner. Though spills of this nature are not uncommon to the oil and gas industry, their resolution requires expert skill and equipment that is not routinely or readily available. The typical process is to first kill the well and stop the leak and then focus on the clean-up.”

Mathew said further that aside from the urgent possible technical responses to contain the leak, Aiteo has sought, become involved with and is now in active collaboration with Clean Nigeria Associates (CNA) which has since mobilised to site in addition to Aiteo internal resources to reinforce containment and recovery efforts. CNA is the oil and gas industry non-profit umbrella body with expertise and resources to contain spills of this nature. Because it was causing growing anxiety among the local communities that rely on the surrounding land and waterways, the area has been cordoned off and the CNA is mobilising additional resources to strengthen the containment effort.

It was gathered that a well-killing assessment site visit has been carried out to evaluate the assets and earmark the resources required to bring the effusion under control. The required apparatus including heavy-duty and specialist equipment are presently being mobilized, locally and internationally, on a fast-track basis, to bring the well under control. For this purpose, “Aiteo has on-boarded the involvement of the renowned Boots & Coots, arguably the leading well control company in the world, working with a local resource. Upon this intervention and conclusion, it is expected that the persistence of the leak alongside its functional consequences will be abated and significantly diminished,” Mathew stated.

Also, senior personnel of AITEO have visited the affected communities and made available, for the use of the communities, relief materials aimed at ameliorating the direct consequences of the incident. At Opu-Nembe Kingdom where the Aiteo delegation was received by the traditional ruler, His Royal Majesty, Dr Biobelemoye Josiah Ogbodo VIII, his council of chiefs and foremost indigenes and government officials, the King said, “We are happy that Aiteo has initiated this visit to support the community at this time and urge it to continue to work with us as partners in progress on its corporate goals in the community.”

Similarly, the Aiteo Group CEO, Mr Benedict Peters, has extended his assurances to the affected communities affirming, “We are doing everything in our power to contain this spill and ameliorate the situation as rapidly, safely and responsibly as possible. We have mobilized best-in-class resources and expertise to put this mishap behind us. Be rest assured of our resolve to limit the escape of oil and protect the ecosystem from its effects.”

In the statement signed by Mathew, the company averred that it remains committed to ensuring immediately that the circumstances are brought under better control and ascertaining the immediate and remote causes of the leak.

Furthermore, “It is important that we affirm our preliminary view based on our assessment of the proximate circumstances that it will be difficult to exclude deliberate tampering of the well by oil thieves attempting to siphon crude directly from the wellhead. In our view, sabotage remains the most imminent cause of this incident,” the company stated.

“Oil theft and asset vandalism continue to present the biggest challenge we face in the operations of oil and gas production in the Niger Delta area. It has continued to damage the production profile of oil producers in so many ways.

As we commend the relevant security agencies with whom we interface to combat this menace, we believe the need and capacity to provide significantly more remain overwhelmingly critical especially because there is so much more to be done to realign the architecture of the delivery infrastructure of oil and gas production in Nigeria in line with the current industry structure of multiple producers operating assets that were previously built and managed by one producer.”

The company reiterated that it feels deeply concerned about the incident and that the circumstances and fortunes of the immediate community remain its most anxious consideration, which it stated had assumed the highest priority alongside making safe the well and its immediate environs.

“It is our fervent desire that in the attainment of this intensely challenging objective, the interests of the proximate community continue to be safeguarded in every material respect by the collective efforts of our company and all the industry professionals whose involvement Aiteo has convoked,” the statement concluded.

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Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Brent Crude Approaches $86 Following Moscow Attacks

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Brent crude oil - Investors King

Amid escalating geopolitical tensions following the devastating terrorist attacks in Moscow, global oil markets rose with Brent crude oil hitting a $86 price level.

The tragic events in the Russian capital, which claimed the lives of over 130 innocent civilians, sent shockwaves through international communities and rattled energy markets already grappling with supply uncertainties.

Speculation surrounding the attacks, claimed by the Islamic State but with hints of potential Ukrainian involvement from Russian President Vladimir Putin, intensified concerns about potential disruptions to oil supplies.

Also, ongoing drone strikes by Ukraine targeting Russian infrastructure further exacerbated worries about the stability of crude oil production and refining capabilities in the region.

The mounting geopolitical unrest in key oil-producing regions has injected a sense of urgency into the market, with investors closely monitoring developments for potential impacts on global supply and demand dynamics.

Despite recent fluctuations, crude oil is poised for a third consecutive monthly gain, buoyed by efforts from the OPEC+ alliance to maintain production cuts and bolstered by tightening US sanctions on Russian energy exports.

The bullish sentiment is further supported by positive commentary on the broader commodities outlook, with central banks signaling potential interest rate reductions to stimulate economic growth, thus underpinning industrial and consumer demand for raw materials.

Analysts remain cautiously optimistic about the trajectory of oil prices, citing a delicate balance between supply risks and supportive macroeconomic factors amidst the backdrop of geopolitical turmoil.

As Brent crude inches closer to the $86 threshold, market participants brace for continued volatility amid unfolding geopolitical developments.

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Indian Refiners Shun Russian Crude Carried by Sovcomflot Tankers Amidst US Sanctions

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Indian refiners have taken a bold stance by refusing to accept Russian crude oil carried on PJSC Sovcomflot tankers, citing stringent US sanctions.

This decision marks a significant shift in India’s energy strategy and underscores the profound impact of global politics on the oil trade.

The move comes in the wake of heightened scrutiny on Sovcomflot tankers following sanctions imposed by the US Treasury’s Office of Foreign Assets Control.

Designating Sovcomflot and identifying specific crude oil tankers, the US has intensified its efforts to clamp down on entities linked to Russia, particularly in the aftermath of the Ukraine invasion.

Indian Oil Corp., Bharat Petroleum Corp., Hindustan Petroleum Corp., Mangalore Refinery & Petrochemicals Ltd., and Nayara Energy Ltd. have all halted the acceptance of cargoes carried on Sovcomflot vessels.

This unified action underscores the severity of the situation, with refiners diligently scrutinizing tanker ownership to ensure compliance with sanctions.

The repercussions of this decision are reverberating throughout the oil market, leading to disruptions in the supply chain and altering trade dynamics.

With fewer tankers available to transport Russian crude, the pricing landscape has undergone a significant shift, with discounts narrowing to compensate for higher freight costs.

Despite the challenges posed by sanctions and supply chain disruptions, India remains a key player in the global oil market.

However, the decision to shun Russian crude on Sovcomflot tankers reflects a strategic recalibration in response to evolving geopolitical realities, underscoring the complex interplay between politics and energy security on the world stage.

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