OML 29 contains eleven oil and gas fields belong to Aiteo Company is currently operating with four of which are producing leaving seven unutilized.
The management of Aiteo Eastern Exploration and Production Company Limited (Eastern E&P Company) which according to record started in 2015, after the Nigerian National Petroleum Corporation (NNPC) and SPDC concluded the transaction of sales off that led to the acquisition of SPDC’s 30 per cent stake in Oil Mining Lease (OML) 29 and the Nembe Creek Trunkline (NCTL) by the oil firm (Aiteo Eastern Exploration and Production Company Limited or also Aiteo Eastern E&P Company),
Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited also assigned their interests of 10 per cent and five per cent respectively in the lease, ultimately giving Aiteo a 45 per cent interest in OML 29 and the NCTL.
Amehnews recall how the Nembe Creek Trunkline (NCTL) is well known for channel for smuggled crude oil out of the country and frequency shutdown by the operator.
The report further stated that OML 29 owned and operates by Aiteo management over four years now said to contain eleven oil and gas fields, out of which four fields are producing leaving seven fields unutilized.
The report disclosed further that (OML 29) oil block also contains significant associated gas volumes, and production is sent to the Nigeria LNG (NLNG) plant at Bonny Island via the Soku gas plant.
There are indications of debt piled up on the operations of the company as some debtors are seeking for sell-off assets to recover their money from the operation.
It was also further learnt that some debtors and operator agreed on restructuring to enable the management pay off their debt while shell and others stakeholders demanded management representative.
The last operational performance check up, shown steadily declining performance that means all is not well with the company return to profitability soon.
AmehNews cited, a petitioner allegedly said that “Aiteo is indebted to several of its local contractors, cumulatively to the tune of billions of naira and the said sums have remained unpaid despite repeated demands”.