Chevron Nigeria is experiencing severe production disruptions due to Arik Air's suspension. The airline's grounding, caused by a $2.5 million debt case, has halted crucial airlift operations to oil fields, potentially reducing Nigeria's oil output by up to 200,000 barrels daily.
Chevron Nigeria Limited faces significant disruptions in its oil production due to the suspension of Arik Air operations. A source informed TheCable that Chevron's ability to airlift personnel to the Osubi airstrip, crucial for accessing oil fields in the Niger Delta, has been severely impacted. This logistical issue is expected to result in a reduction of about 130,000 barrels of crude oil production for Nigeria today.
Chevron, a key player in Nigeria's energy sector, operates several major assets in the region, including the Agbami field—one of the largest deepwater discoveries in Nigeria. Additionally, Chevron is involved in natural gas projects and has facilities such as the Escravos gas plant and the Escravos gas-to-liquids plant.
The suspension of Arik Air, which services Chevron, has been a direct consequence of a federal court order related to a $2.5 million debt owed by the airline. The Nigerian Airspace Management Agency grounded some of Arik Air’s aircraft as part of the enforcement action.
Roy Ilegbodu, CEO of Arik Air (in receivership), criticized the sudden decision, highlighting its detrimental effects on both the airline and the broader Nigerian economy. He warned that the grounding of the airline’s fleet would impact everyday Nigerians who rely on its services for various essential activities.
This disruption comes at a time when Nigeria is already grappling with production challenges due to oil theft and pipeline vandalization. On July 2, Mele Kyari, GCEO of the Nigerian National Petroleum Company (NNPC), declared a state of emergency to address these production issues.
