Connect with us

Oil & Energy

‘Cause Of Nembe Creek Oilfields’ Explosion Still Unknown’

Published

on

The cause of the March 1 explosion from Oil Well No.7 within Nembe Creek oilfields remains unknown, as the investigation into the incident enters day two, the Federal Government says.
The National Oil Spills Detection and Response Agency (NOSDRA) said on Friday that it had commenced investigations into the explosion located within OML 29 operated by Aiteo Eastern Exploration.
It would be recalled reports that an explosion from an oil well within the oil block on March 1 ignited a fire which Aiteo officials said was put off on March 2, had already discharged crude oil and gas into the environment.
NOSDRA’s Director-General, Dr Peter Idabor, had told newsmen that a Joint Investigative Visit (JIV) had been scheduled for Thursday to ascertain the possible cause of the incident.
The volume of crude oil and gas discharged into the surrounding environment arising from the explosion is yet to be ascertained
Idabor explained that the JIV, a statutory probe of leak incidents in the oil and gas sector would determine the cause of the explosion, the volume of oil leakage as well assess damage to the environment.
He said that a JIV report signed by representatives of the community, NOSDRA, Bayelsa State Government and the oil firm who participated in the investigation was expected at the end of the probe.
A member of the joint investigative team, from the Nembe Creek field, said that the team was yet to arrive at a conclusion on the cause of the blast.
“The JIV is still ongoing; it was not rounded up as we progressed with physical inspections on Thursday without arriving at the probable cause from physical examinations.
“There appears the need for a more detailed and technical assessment to understand the primary cause of the incident prior to explosion that is more visible at moment on the riser.
“The investigation therefore requires further details and is still open,” Donald Egba, a community representative on the JIV said.
However, a statement signed by Management of the oil firm made available by its Public Relations Manager, Mr Ndiana-Abasi Mathew on March 2, confirmed that there was no human casualty.
Aiteo, an indigenous Oil and Gas Exploration and Production firm pledged that investigation into the incident was of utmost priority.
It said that the explosion did not affect the 97 km Nembe Creek Trunk Line (NCTL) which was shut down on February 28 prior to the incident. However, fears that oil export would be affected by the outage of the 150,000 barrels per day capacity export line were allayed as the JIV team member who spoke to NAN said that the facility had been restarted.
“The NCTL from our findings at the field is up and running as the incident did not in any way have links with the pipeline. Shell Petroleum Development Company in 2015 divested its equity in OML 29 and transferred its interest in the oil block including NCTL for 1.7 billion dollars to Aiteo.

Continue Reading

Oil & Energy

Take Concrete Action To Boost Oil Production, FG Tells IOCs

Published

on

The Federal Government has called on urged International Oil Companies (IOCs) operating in Nigeria to take concrete steps to ramp up crude oil production, following the country’s ambitious target of reaching 2.5 million barrels per day by 2027.

Speaking at the close of a panel session at the just concluded 2026 Nigerian International Energy Summit, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government had created an enabling environment for oil companies to operate effectively.

Lokpobiri stressed that the performance of the petroleum industry is fundamentally tied to the success of upstream operators, noting that the Nigerian economy remains largely dependent on foreign exchange earnings from the sector.

According to him, “I have always maintained that the success of the oil and gas industry is largely dependent on the success of the upstream. From upstream to midstream and downstream, everything is connected. If we do not produce crude oil, there will be nothing to refine and nothing to distribute. Therefore, the success of the petroleum sector begins with the success of the upstream.

“I am also happy with the team I have had the privilege to work with, a community of committed professionals. From the government’s standpoint, it is important to state clearly that there is no discrimination between indigenous producers and other operators.

“You are all companies operating in the same Nigerian space, under the same law. The Petroleum Industry Act (PIA) does not differentiate between local and foreign companies. While you may operate at different scales, you are governed by the same regulations. Our expectation, therefore, is that we will continue to work together, collaborate, and strengthen the upstream sector for the benefit of all Nigerians.”

The minister pledged the federal government’s continued efforts to sustain its support for the industry through reforms, tax incentives and regulatory adjustments aimed at unlocking the sector’s full potential.

“We have provided extensive incentives to unlock the sector’s potential through reforms, tax reliefs and regulatory changes. The question now is: what will you do in return? The government has given a lot.

Now is the time for industry players to reciprocate by investing, producing and delivering results,” he said.

Lokpobiri added that Nigeria’s success in the upstream sector would have positive spillover effects across Africa, while failure would negatively impact the continent’s midstream and downstream segments.

“We have talked enough. This is the time to take concrete actions that will deliver measurable results and transform this industry,” he stated.

It would be noted that Nigeria’s daily average oil production stood at about 1.6 million barrels per day in 2025, a significant shortfall from the budget benchmark of 2.06 million barrels per day.

Continue Reading

Oil & Energy

Host Comm.Development: NUPRC Commits To Enforce PIA 2021 

Published

on

The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan, has restated the commission’s commitment to ensuring oil companies comply with the Petroleum Industry Act (PIA) 2021 to promote sustainable development in host communities.
Eyesan made the remark at a Sensitization Programme in Owerri, Imo State, explained that the PIA 2021 mandates oil companies to contribute 3% of their annual operating costs to Host Communities Development Trusts (HCDTs) for community development projects.
Represented by Atama Daniel, Eyeso said “The funds will be used for education, healthcare, infrastructure, and economic empowerment”.
Eyesan assured that the commission would facilitate a smooth implementation process and ensure compliance by oil companies.
She, however, urged oil-producing communities to protect oil facilities in their areas as well as stop all illegal oil exploration activities within their communities.
The chief executive also disclosed that NUPRC has established Alternative Dispute Resolution Centres to resolve disputes between oil companies and host communities.
Earlier, the National President, HOSTCOM, Dr. Benjamin Tamarenebi, advised the host communities to always embark on sustainable development projects rather than frivolous projects.
He warned traditional rulers against bidding for contracts for execution of projects approved for their communities in line with the provisions of the Petroleum Industry Act.”
Tamarenebi noted that monarchs, as heads of Host Communities Board of Trustees, have the responsibility of supervising the awarding and execution of projects approved for the communities and ensuring accountability, adding that awarding contracts to themselves will lead to compromise.
He disclosed that funds disbursed to the communities are now higher than before and urged the communities to take good advantage of it.
“They can build schools and other sustainable projects and think of something that will always be a more economical variable in the community; if this is done there would be economic activities and development. In order not to waste the funds, manpower, train your children with the funds, give them scholarships instead of buying vehicles or renting apartments in the city”, he said.
In his remarks, the Deputy Executive Director, Environmental Defenders Network (EDEN), Johnson Abiye, urged regulators to ensure smooth implementation of the Petroleum Industry Act as it relates to the oil producing communities.
Abiye noted that many communities that were supposed to be part of HOSTCOM were omitted and called for the situation to be redressed.
Continue Reading

Oil & Energy

PETROAN Cautions On Risks Of P’Harcourt Refinery Shutdown 

Published

on

The Petroleum Products Retail Outlets Owners Association (PETROAN) has expressed fears of rust, corrosion, abandonment, lack of lubrication, and eventual destruction of installed equipment at the PortHarcourt Refinery due to continued Shutdown.
PETROAN said it would also result in rendering the entire revamp effort futile if urgent action is not taken.
The Public Relations Officer and Spokesperson of the Association, Dr. Joseph Obele, in a statement, noted that over $1.5 billion of public funds were reportedly expended on the rehabilitation of the Port Harcourt Refinery, which was reopened in November 2024 and shut down again in May 2025 due to alleged financial losses.
Speaking on the sidelines of the recent remarks credited to the Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, in which he described the re-operationalisation of the Port Harcourt Refinery and Petrochemical Company as a ‘waste of resources’ and admitted that NNPC lacks the capacity to operate refineries profitably, Obele expressed disappointment, describing the statement as troubling, demoralising, and deeply disturbing, and raising  fundamental questions about institutional responsibility, governance, and the stewardship of public resources.
With the huge funds already spent on the rehabilitation process, Obele stated
therefore, that for the GCEO of NNPC to  dismiss the entire exercise as a waste of resources, without clear attribution of responsibility, performance audits, or accountability measures, is unacceptable to Nigerians.
“If NNPC truly lacks the capacity to run refineries profitably, as admitted by its own GCEO, then Nigerians deserve to know who advised the investment, who supervised the rehabilitation, who certified the restart, and who benefited from the contracts and operations.
“Public institutions cannot casually dismiss a multi-billion-dollar national asset as a mistake without consequences”, he said.
The PETROAN spokesperson also faulted the narrative by Ojulari that Nigerians should be “thankful” solely because of the success of the Dangote Refinery.
While acknowledging the strategic importance and commendable achievement of the privately owned refinery, he stressed that private investments cannot replace the constitutional and economic obligation of government to efficiently manage public assets.
“Dangote Refinery is a private investment driven by profit and efficiency. NNPC, on the other hand, holds national assets in trust for Nigerians. One cannot be used as an excuse for the failure of the other,” Dr. Obele emphasized.

The energy expert further warned that repeated public admissions of incompetence by NNPC leadership risk eroding investor confidence, weakening Nigeria’s energy security framework, and undermining years of policy efforts aimed at domestic refining, price stability, and job creation.

He described as most worrisome the assertion that there is no urgency to restart the Port Harcourt Refinery because the Dangote Refinery is currently meeting Nigeria’s petroleum needs.

“Such a statement is annoying, unacceptable, and indicative of leadership that is not  solution-centric,” he said.

The PETROAN National PRO reiterated that Nigeria cannot continue to normalise waste, institutional failure, and retrospective justification of poor decisions stressing that admitting failure is only meaningful when followed by accountability, reforms, and a clear, credible plan to prevent recurrence.

By: Lady Godknows Ogbulu
Continue Reading

Trending