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Nembe Oil Spill: FG Halts Aiteo From Operating Oilfield in Bayelsa

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Nigeria's aiteo

Following the damages done by AITEO leaking oil pipe to the people of Nembe community in Bayelsa state, the Federal Government has halted all operations in the affected area until a proper investigation had been conducted.

The Ministry of Environment disclosed this in a statement signed by Mr. Saghir el Mohammed, Press Director, Ministry of Environment, on Tuesday in Abuja.

Mohammed stated that the federal government had taken a proactive measure to assess the damages done by Aiteo oil spillage to the people of Nembe Local Government Area of Bayelsa State and ensure safety of lives and properties.

The statement reads, “The Federal Government has directed the exploration company, AITEO Eastern Exploration and Production Company Limited (AEEPCo), to halt operations in the area until a proper investigation is carried out.

“Also, adequate measures will as well put in place to ensure the safety of lives and property in the area.
“It can be recalled that the spill occurred on Nov. 5, 2021, in a form of a fountain within the proximity of Opu Nembe Community at Well 1, Well Head located at the Southern Field of Sant Barbara.

“Upon receipt of the report of the incident, a Joint Investigation Team (JIT) comprising the National Oil Spill Detection and Response Agency (NOSDRA), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), was set up.

“Also, the state Ministry of Environment, Community representatives and Aiteo Eastern Exploration and Production Company was set up on Nov. 6, 2021 to immediately address the situation.

“The exercise was inclusive because of inaccessibility to the wellhead location due to the hydrocarbon fumes that saturated the atmosphere in the area.

“Consequently, the JIT directed AEEPCo to shut down in the impacted asset (well head) for appropriate oil spilI response.

Accordingly, AEEPCo deployed booms and skimmers to contain the spill crude oil from spreading.

“As at Nov. 10, 2021, efforts to shut the well has proven difficult due to inaccessibility.

“Meanwhile, in an effort to safeguard the environment and livelihood, staff from the NOSDRA’s Yenagoa Field Office were deployed to the site to monitor and give a progress reports on the measures being taken to address the issue.

“There is further directives to AEEPCo to engage all relevant stakeholders in the spilled oil recovery process.

“In this vein, 3,000 barrels of emulsified crude oil have been recovered and held in a recovery barge.

“Also, additional booms were deployed by the Clean Nigeria Association (CNA) System to work with the on-site recovery contractor.

“Further effort yielded result as containment and recovery within the leak area have been reinforced by Nov. 15,” he said.

Mohammed said that the CNA has mobilised to site for enhanced containment and recovery.

He added that boot and coots, mobilised for well control and securing and AEEPCo has secured temporary work permit for expatriates expected in the country for the activity.

According to him, based on JIT reports, a well control company (Kenyon International) was at the incident location for an on-site assessment.

“Meanwhile, containment and recovery are still on-going. It is instructive to note that the wellhead experts have arrived Nigeria and will commence work on killing the well.

“However, in order to ensure safety and guarantee future operations in the area by AEEPCo, NOSDRA has mandated the company to carry out concrete actions.

“The action is to address the situation that includes clean-up of impacted areas, remediation of spill site as well as damage assessment and post-spill impact assessment.

“NOSDRA, through the Federal Ministry of Environment, will keep the public informed on future developments on the spill incident with an effort to contain further spread and limit the effect on the environment.

 

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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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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Crude Oil - Investors King

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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