Nembe Oil Spill: Buhari Expresses Concern, Sends Sylva to Community

•FG shuts down operations at Santa Barbara oilfield

•Upstream commission outlines strategy for clean up

•Minister of State for Petroleum: We have no control over cooking gas price hike

Deji Elumoye, Michael Olugbode and Emmanuel Addeh in Abuja

President Muhammadu Buhari yesterday gave a marching order to the Minister of State for Petroleum Resources, Timipre Sylva, to immediately proceed to Nembe, Bayelsa State to investigate the level of damage occasioned by the recent oil spillage in the area.

This is just as the federal government has directed that operations at the Santa Barbara oilfield be shut down.

In the same vein, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday outlined action plans to deal with the situation.

Also, yesterday, the federal government gave an indication that there might be no immediate halt to the upswing in prices of cooking gas across the country as the government declared that it has no control whatsoever over the rising cost of the product, saying gas prices are determined in the international market.

Briefing newsmen at the State House, Abuja after a visit to Buhari to introduce the CEO, Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA), Faruk Ahmed and the CEO, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, Sylva while responding to a question on what the federal government was doing to minimise damage caused by the oil spillage in Nembe, disclosed that the president had directed that he should visit the community today to assess the situation.

He said, “And the question which is on the spillage at OML 29, we are quite aware of it. Unfortunately, it has happened. It is also one of the issues I discussed with the president as minister and he has actually asked us to go and visit the site to assess the situation and report back.

“Definitely, we are quite concerned with what is happening in Nembe and will be going there very tomorrow, to look at what is happening and report back.

“Mr. President is very personally interested and we have discussed it and he said we should go there and come back and report to him because environmental degradation issues are things that we are not going to condone. Of course we’ll work with the operators of OML 29 to ensure that this spillage is brought under control as quickly as possible.”

FG Shuts Down Operations at Santa Barbara Oilfields

However, in a statement yesterday, by the Director, Press and Public Relations, Ministry of Environment, Saghir el Mohammed, the government announced the shutdown of the Santa Barbara oilfield.

It explained that the suspension of activities at the oilfield would be effected until proper investigation was concluded and adequate measures put in place to ensure safety of lives and property in the area.

The statement read: “In a proactive measure to address the recent unfortunate oil spillage at Santa Barbara in Nembe Local Government Area of Bayelsa State, the federal government has directed the exploration company, Aiteo Eastern Exploration and Production Company Limited (AEEPCo) to halt operations in the area until proper investigation is carried out and adequate measures put in place to ensure the safety of lives and property in the area.”

The statement recalled that the spill occurred on November 5, 2021, in a form of fountain-on within the proximity of Opu Nembe Community at Well 1, Well Head located at the Southern Field of Sant Barbara.

It revealed that 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 Regualtory Commission (NUPRC), Bayelsa State Ministry of Environment, Community representatives and Aiteo Eastern Exploration and Production Company was set up on November 6, 2021, to immediately address the situation.

The exercise was inconclusive because of inaccessibility to the well head location due to the hydrocarbon fumes that saturated the atmosphere in the area.

The statement added that the JIT directed AEEPCo to shut in the impacted asset (well head) for appropriate oil II response, and accordingly, AEEPCo deployed booms and skimmers to contain the spill crude oil from spreading.

According to the statement, as of November 10, 2021, efforts to shut in the well had proven difficult due to inaccessibility.

But as part of efforts to safeguard the environment and livelihood, staff from the NOSDRA’s Yenagoa Field Office were deployed to the site to monitor and give progress report on the measures being taken to address the issue. There was further directives to AEEPCo to engage all relevant stakeholders in the spilled oil recovery process.

The statement revealed that 3000 barrels of emulsified crude oil had been recovered and held in a recovery barge. It also stated that additional booms were deployed by the Clean Nigeria Associates, a Tier II response (CNA) System to work with the on-site recovery contractor.

It added that further effort yielded result as containment and recovery within the leak area had been reinforced as of November 15, with Clean Nigeria Associates (CNA) mobilising to site for enhanced containment and recovery. Also Boot & Coots, mobilised for well control and securing.

The statement further revealed that AEEPCo has secured temporary Work Permit for expatriates expected in the country for the activity.

Logistics support and arrangement build-up for the Well kill activity is currently ongoing, and based on JIT reports, a well control company (Kenyon International) was at the incident location for an on-site assessment.

It however said containment and recovery were still on-going, with the well head experts now in Nigeria and work expected to be commenced on the clearing of the well

However, in order to ensure safety and guaranty future operations in the area by AEEPCo, NOSDRA has mandated the company to carry out concrete actions to address the situation that include clean-up of impacted areas, remediation of spill site as well as damage assessment and post spill impact assessment.

Upstream Commission Outlines Strategy to Curb Oil Spill

Also, the NUPRC has outlined action plans to deal with the recent oil spill.

It stated that when followed, the plan would help curb the leak at the AEEPCO facility, as investigations into the cause of the spill continues by the newly-created commission.

Chief Executive Officer of the NUPRC, Mr. Gbenga Komolafe, in a statement in Abuja, listed the action plans as a directive to Aiteo to activate emergency Environmental Management Plan (EMP).

In addition, it noted that the company would also carry out Post Impact Assessment (PIA) study of the spill; and a Joint Investigation Team (JIT) to determine cause of spill and to convey the extent of impact and quantity of crude spilled.

Komolafe said that the measures would be put in place as the commission continues to investigate and monitor the situation.

He stated that the commission had received a report of the spill, which occurred at the Santa Barbara well via the statutory regulatory requirement of submission of form “A” by Aiteo, and immediately swung into action to investigate the incident in conjunction with other stakeholders.

He assured that the commission would ensure that all necessary steps are taken in line with global best practices, which will be deployed in the management of the situation.

He added that the NUPRC would ensure that the spill has the least impact on the environment and the livelihood of the people of the community as remediation will be done as soon as possible.

Komolafe reiterated that the result of the investigation into the incident will be communicated to the public when concluded.

Technical Advisor to the Ijaw Diaspora Council, Prof. Rick Steiner

Meanwhile, Technical Advisor to the Ijaw Diaspora Council, Prof. Rick Steiner, a scientist specialising in oil spill issues globally, has asked Aiteo and its partner, the NNPC to make an initial deposit of $500,000 to ameliorate the suffering of the impacted communities.

Steiner stated that after reviewing the video of the outflow rate, it was occurring under extremely high pressure, estimating that the flow rate from the failed well is at least 10,000 barrels of toxic hydrocarbons (methane and crude oil) per day, and possibly twice that.

“Thus, after 15-20 days of continuous flow, the spill has already released a minimum of 150,000 barrels – 200,000 barrels of toxic hydrocarbons into the sensitive mangrove ecosystem in Nembe LGA, and possibly twice that much.

“Even by international standards, this constitutes a major hydrocarbon spill, and its impacts are likely to be serious, extensive and long lasting,” he said in a letter copied a number of Nigerian authorities.

He stated that having been appointed as technical advisor to the council to assess and advise, he was deeply concerned that the responsible parties did not have in place a rapid “well kill” capability to promptly stop the blowout as required by Nigerian law.

He recommended that Aiteo/NNPC must immediately kill the blowout, either fitting a capping stack to the failed wellhead, drilling a relief well nearby to conduct a bottom kill of the well, or other kill techniques, as required by Nigerian law, and retain the failed wellhead structure for future independent analysis to ascertain the cause of the failure.

“Aiteo/NNPC must immediately deploy sufficient oil spill containment and clean-up equipment and personnel to collect as much of the spilled hydrocarbon pollutant as possible, hiring local community members as possible.

“This is clearly a Tier III oil spill (the largest category), well beyond the capability of local clean-up assets such as Clean Nigeria Associates, and Aiteo/NNPC should contract Oil Spill Response Limited (OSRL) in Southampton UK to conduct a large-scale Tier III spill response.

“Aiteo/NNPC must provide immediate, interim financing to the affected communities of at least $500,000 , to be used by the communities in their initial response to the spill.

“It should be made clear that this initial funding will in no way prejudice future community claims for compensation for the spill. This initial compensation will allow the community to purchase alternative food resources during the spill.

“This is because fish from the spill area are contaminated and must not be caught and consumed; it must purchase Personal Protective Equipment (PPE); and conduct its overall response to this emergency,” the Ijaw group insisted.

In addition, it stated that Aiteo/NNPC, Bayelsa State, and the federal government must agree to support a technical advisor for the Ijaw communities to join the JIT.

Furthermore, the group stated that Aiteo/NNPC must immediately commission an independent, scientific environmental damage assessment by a credible, independent scientific institution.

“Aiteo must preserve all evidence, including documents, video and photographs, and actual equipment (e.g. the failed Christmas Tree structure) that may be relevant to determining the cause of the wellhead failure and spill.

“Aiteo must provide the community with all records pertaining to this well, including its design and installation date, any/all inspection and maintenance the company has performed on the well, any deficiencies the company has noted, all corrective/remedial actions the company has taken on the well, etc.

“The Nigerian federal government should convene an independent inquiry as to the cause, response, and impact of this major oil spill,” the diaspora group stated.

FG Says It Has No Control over Cooking Gas Price Hike

Speaking further during the visit to the president, Sylva said the government has no control over the hike in gas price and cannot subsidise the product since it had been fully deregulated.

“You you all are aware that in Europe, today, gas prices have gone up, there was even crisis in Europe relating to gas prices. So the pricing of gas internationally now affects also the price of gas in the country.

“Apart from that, there are some issues around Value Added Tax charges on imported gas, and of course, taxes on imported gas, which we are handling. But of course, quite frankly, these taxes on imported gas, you must also juxtapose it side by side with the local producers of gas,” he added.

On the purpose of his visit to President Buhari, the Minister said it was to formally present the CEOs of Oil Downstream and Upstream companies to him.

“As you are all aware that Mr. President is also the Minister of Petroleum and, as its characteristic of Mr. President, he did not even see the people he appointed before he approved the appointment.

“He appointed them based on their documentation and the competence that he saw in their credentials that were submitted. So after the appointments, of course, you know, that the PIA is in force now. And the agencies that have been created by the EPA are not functional, Upstream Petroleum Regulatory Commission, and the Mid and Downstream Petroleum Regulatory Authority, they are fully functional, their Chief Executives and some of the executive directors are in place.

“So, I had to bring the Chief Executive of these two agencies to Mr. President, so that at least he can see them for the very first time so that on occasions as Minister, when he meets them, he will recognise them,” he explained.

Commenting on what was responsible for the resurfacing of queues in some filling stations in the Federal Capital Territory, the CEO of the Midstream and Downstream Petroleum Regulatory Authority, Ahmed said, “Basically what happened is that some of the depot owners are selling PMS, above the official ex-depot price of N148, they are selling at N156, N157.

“And the reason they adduced is that they are paying for their logistics like shipping in US dollars, they’re paying for NPH, port charges and NIMASA charges in US dollars.

“They have to go to black market to source these US dollars. And that differential between the official and the black market they buy that is why they added about N9 to N10 to N15 and it depends on whether you are in Lagos, Calabar, Port Harcourt, or Oghara.”

Also speaking, Komolafe said, “the full implementation of the Petroleum Industry Act has commenced by our appointment. And indeed, we have resumed in the office. Like for the Nigeria Upstream Petroleum Regulatory Commission, which I am the Chief Executive, I’ve been in office in the past 30 days.

“And in the process, we’ve been able to come up with six point agenda in line with prescriptions of the way the Act, with which we intend to transform and add value to the Nigeria upstream activities in a manner that we can optimize value across the value chain of the Nigerian upstream activities.

“Among these, is we intend to basically work towards enhancing our daily production, which at the moment, hovers around 1.6 million barrels a day.”