The Nigerian Ministry of Environment has raised concerns regarding the approval granted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to Aiteo Eastern Exploration and Production Company (E&P) for conducting barging operations in Nembe, Bayelsa State. The company is involved in transporting crude oil via the Brass River to the Atlantic Ocean. At a recent hearing by the House of Representatives Committee on Environment, Aiteo’s representatives stated that their barging activities had received clearance from the NUPRC.
The hearing, which focused on the environmental impact of oil transportation from the Nembe Creek Trunk Line to offshore crude storage, also examined an oil spill incident involving the Nigerian Agip Oil Company (now Oando Oil Ltd) in the Olugboboro Community, Southern Ijaw, Bayelsa State.
Aiteo’s Chief Operating Officer, Ewarezi Useh, clarified that the decision to barge crude was taken as an interim measure after persistent vandalism on their pipeline network. “Barging became necessary due to vandalism, which has rendered our crude transport lines inoperable. The continuous theft and vandalism shut down production for nearly two years,” Useh stated. He emphasised that the barging was a joint venture decision between Aiteo and the Nigerian National Petroleum Company Limited (NNPCL), with the objective of sustaining production while awaiting improved security.
Despite Aiteo’s explanation, the Ministry of Environment, represented by Dr Musa Gashau, expressed discontent, highlighting that the barging activities were not covered in Aiteo’s Environmental Impact Assessment (EIA) approval. The EIA, approved in November 2020, authorised pipeline installations but excluded barging operations.
Committee Chairman, Pondi Gbabador, criticised the discrepancies between government agencies’ approvals, querying why NUPRC had authorised barging despite the Ministry of Environment’s position. Aiteo argued that barging was essential for maintaining operations in the face of pipeline vandalism, stressing that they sought and received approval from relevant authorities, including the NUPRC.
Useh elaborated on the logistical difficulties posed by the barging process. “We had no choice. Barging was the only way to ensure we could get crude to the market, both for the survival of the company and the country’s economy. The decision was taken after extensive scenario analysis, involving the NNPCL, and only after receiving the necessary approvals.”
The Ministry of Environment maintained that Aiteo’s barging activities lacked proper clearance, with Dr Gashau asserting, “The EIA approval was strictly for pipeline installation and crude storage platforms, not for barging.” Despite this, Aiteo representatives argued that the NUPRC conducted thorough environmental assessments before granting the go-ahead for barging, with each barge requiring environmental clearance before departure.
Aiteo’s Manager of Health, Safety, and Environment, Augustina Amaka Bisong, insisted that all environmental considerations had been accounted for, with no spillage reported during the barging process. She attributed 99% of the company’s spills to third-party interferences such as theft and vandUseh highlighted the challenges the company faced, noting that they were operating at only 30,000 to 40,000 barrels per day, significantly below the facility’s 120,000-barrel capacity. He attributed the shortfall to the activities of vandals and thieves, who had crippled the company’s ability to transport crude through pipelines.
The Director-General of the National Oil Spill Detection and Response Agency (NOSDRA), Engr Chukwuemeka, supported Aiteo’s claims, stating that there had been no recorded incidents of oil spillage since the commencement of barging activities.
Despite Aiteo’s assurances, the committee expressed reservations about the environmental impact of the company’s activities. It resolved to conduct an oversight visit to the affected areas to gather firsthand information for legislative action. The hearing also heard from Oando Oil Ltd, which operates in Bayelsa State, and called for legislative support to address the pervasive issue of oil theft and vandalism, which has far-reaching implications for crude oil production in Nigeria.
Oando’s Deputy Manager of Environment, Akuduro Philip, noted that 90% of the company’s spill incidents were caused by third-party interference, with Bayelsa State, particularly Southern Ijaw, being the most affected region.
The hearing underscores the complex interplay between regulatory bodies, oil companies, and environmental concerns, as Nigeria grapples with crude oil production challenges in the face of widespread vandalism and theft.
