Operators, yesterday, in Abuja said the return of Nembe Exploration and Production Company Limited remained critical to meeting Nigeria’s two million barrel per day (bpd) plan in the 2025 budget.

As much as 600,000 barrels of crude oil is expected transported through the Nembe Creek Trunk Line (NCTL) housing about six crude oil producers but repeated vandalism rendered the facility redundant pushing operators to shut in.

Operated by Aiteo Eastern Exploration and Production Company Limited (AEEPCO) now running the operation under Nembe Exploration and Production Company Limited alongside Oil Mining Lease (OML) 29, the company said the assets have transformed not just in name but in operational approach.

Years of devastating pipeline vandalism and crude theft at times wiping out up to 90 per cent of production volumes had forced the company to halt operations entirely.

Today, the company is producing around 60,000 barrels per day, with plans to increase output to over 100,000 bpd once permanent evacuation infrastructure is completed.

This, it said, places Nembe as a central player in Nigeria’s broader plan to revive oil output and fiscal stability. Production in Nigeria remains below the 2.06 million budget benchmark. Current levels hover around 1.4 million bpd, putting pressure on government revenue and foreign exchange reserves.

Unlocking underutilised fields like Nembe has thus become a top priority. The company’s Group Managing Director, Victor Okoronkwo, noted that with the completion of a permanent pipeline, production could rise to as high as 120,000 bpd. He described Nembe not only as an operational asset but also a national revenue enabler, especially given Nigeria’s fiscal reliance on crude oil.

In response to the sabotage crisis, the company developed an innovative barging system in partnership with third parties. This temporary evacuation method has now evolved into the Nembe Crude Oil Export Terminal, located offshore Brass.

It also gave rise to a new export blend, Nembe Crude, now traded internationally, distinct from the traditional Bonny Light stream.
While the use of barges significantly increased operational costs, it offered the company and the country a lifeline.

Losses have since reduced drastically, from over 70 per cent to below 5 per cent, Okoronkwo said. This is because of improved control over the evacuation process and collaboration with host communities.

The recent rebranding to Nembe Exploration and Production Company Limited, Okoronkwo said symbolises more than a name change, adding that it aligns the company’s identity with its operational reality.

Most of its production now comes from the Nembe axis, which also serves as the hub for export through the Nembe Terminal. The company still operates OML 29 under a joint venture with the Nigerian National Petroleum Company (NNPC), managing 12 fields, though production is currently concentrated in the Nembe area.

The company’s Chief Operating Officer, Ewariezi Useh, confirmed that the shift to barging allowed for real-time monitoring of crude volumes from wellhead to terminal for the first time in years.

He noted that community engagement has also played a role in reducing sabotage, with local stakeholders being encouraged to take ownership of the asset’s protection.