Aiteo: Indigenous player responds to internationally familiar crisis
Ben Eguzozie is business a.m. regional lead based in Port Harcourt, providing regional and national coverage for economy, business and finance
You can contact him on ben.eguzozie@businessamlive.com with stories and commentary.
November 29, 2021894 views0 comments
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Deploys equipment in Nembe creek to stop leak
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Amid crisis, Aiteo responds to communities with relief materials
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6-year-old Nigerian company with 70% vandalization of its Nctl needs support, say experts
Aiteo, Nigeria’s indigenous oil producing company, had a major wellhead leak crisis catapult it to the position of becoming the very first indigenous player to deal with a crisis of this proportion that is a familiar occurrence in the operations of major international oil companies, which are sometimes not heard about.
By the weekend, Aiteo Eastern Exploration and Production Company (AEEPCO), operator of the NNPC/Aiteo Joint Venture of Oil Mineral Lease (OML) 29, had deployed an advanced clean-up equipment to cap the broken wellhead at its Santa Barbara, Southwest field, in Nembe Local Government Area of Bayelsa State.
Victor Okoronkwo, its group managing director, said the company moved in booms and environmental barges mopping up the spilled crude, adding that all relevant personnel and experts, local and international, were on location, with marine spread carrying the pumps, chemicals, cranes, and that firefighting equipment were now 100 percent mobilised and were sailing to location.
“The containment exercise continues, with booms and environmental barges mopping up spilled crude,” Okoronkwo said.
Ewarezi Useh, chief operations officer of the wholly owned Nigerian company, had briefed the minister of state for petroleum resources, Timipre Sylva on the company’s pre-kill well assessment by Boots & Coots, assuring that the well would be secured within 48 hours of his visit, due to the progress achieved by its team of technical experts on ground.
Oil industry experts, who have followed development since the crisis broke have, while weighing in on the incident, say they strongly believe that a company like Aiteo that has been crying for long with 70 percent vandalization of its Nembe Creek Trunk Line (NCTL) infrastructure, and which, despite supporting the security architecture in the area, including the Nigerian Navy, with tens of millions worth of surveillance equipment, needs support and encouragement from regulators and everyone at a time like this.
“When an incident of national proportions like this strikes, national agencies like the NEMA and other sector regulators should show support to an indigenous investors like Aiteo, who are holding strongly to a place in the industry,” an oil & gas expert told this newspaper over the weekend.
“It is not fair to just watch a six-year-old Nigerian company wallowing under security challenges and sit down to point accusing fingers,” said another industry expert, while calling for full support to enable Aiteo to overcome the present crisis.
The Aiteo GMD had earlier assured the minister of state for petroleum, Timipre Sylva, that the gushing wellhead would be secured within 48 hours in view of the progress its team of technical experts had made.
“Following the visitation of the Honourable Minister of State for Petroleum, Chief Timipre Sylva and other dignitaries to take stock of the situation at ground zero yesterday [Friday], on-going efforts are being undertaken to cap the well at its Santa Barbara, Southwest field, in Nembe Local Government Area of Bayelsa State,” he said.
He said the minister, Silva, had detailed discussions with the Aiteo intervention team on ground, led by its chief operations officer, Ewarezi Useh, who debriefed him on the pre-kill well assessment by Boots & Coots, assuring him that the well would be secured within 48 hours of his visit.
Afterwards, he had a town-hall meeting with the Opu-Nembe Kingdom where he and other leaders of regulatory agencies held a detailed interaction with the people. Together with the company, they assured them that their concerns and grievances will be addressed, while investigations take off upon the killing of the well.
The containment exercise had been continuing with booms and environmental barges mopping up spilled crude. All relevant personnel and experts, local and international had been on location. The marine spread carrying the pumps, chemicals, cranes and firefighting equipment were already 100 percent mobilized, having sailed to location.
The crew night stopped at KM45 and took off again first light the next day with ETA 12 noon on site; 2 x 1000MT Ramp barge containing simulation equipment for the well kill also sailed today while sailing, concurrent activities are on-going on the barges to minimize clean up downtime, (spotting and hook up of hoses).
Aiteo said: “At SBAS-1 the well control package was transferred onto the well platform and the crew carried out an inspection with the Xmas tree and identified THS (tubing Head Spool) to be 2-1/16”. We commenced RU (rig-up) but could not finish due to bad weather. Forward plan complete RU and install a well control package to arrest the flow.
Giving specific updates on site status/fire status in well & vicinity, the company said there is currently no fire at or within the vicinity of the well. The Environmental Impact Assessment (EIA) in the vicinity of the area is in the planning phase with DPR / NOSDRA accredited firms.
On its update on efforts to kill the well, the company stated that the following measures were being undertaken: a team comprising members from Aiteo Well Operations and Boots & Coot is at the well site for site preparation for well control operation; connection of suction and delivery lines of two high discharge water pumps, to be used for well control operation is completed, adding that commissioning of the pumps is in progress; civil work for development of debris laydown area and bunk house placement area is in progress; a 1000 Ramp barge containing all pimping and simulation equipment for the well kill is approaching Santa Barbra as per latest report received at 21:00hrs; Barge carrying heavy duty well equipment on sail; and loading of additional equipment being mobilised from Snake Island was underway, and was expected to have arrived at the staging area in Santa Barbara on Friday.
Meanwhile, on relief and recovery, the indigenous oil company has provided relief materials including, mosquito nets, hygiene and sanitary kits, disinfectants, and different types of food materials were being mobilised to the immediate communities impacted by the spill.
Also, Aiteo officials are closely monitoring all activities related to the affected communities, with respect to: feeding, lighting, hygiene, drinking water and medical requirements with the help of local associations.
Aiteo’s safety and security and HSE teams are monitoring the quality of air every six hours to ascertain the liability of the areas adjoining ground zero. The company is also mobilising additional relief materials for the affected communities.