Belemaoil Resumes Oil Production at OML 55 After Three-Year Hiatus Due to Theft

Belemaoil Producing, a Nigerian independent oil producer, has officially resumed operations at its Oil Mining Lease (OML) 55, three years after theft-related facility damage halted production. The company announced the resumption in a statement, highlighting that operations were suspended in 2021 due to extensive oil theft along the delivery line to the Bonny terminal.

OML 55 consists of five oilfields, producing approximately 14,000 barrels of oil and over 70 million standard cubic feet of gas daily. A significant milestone in Belemaoil's recovery was marked by the arrival of the first floating oil storage vessel at OML 55 on October 6.

Belemaoil acquired OML 55 from Chevron Corp in 2015, but operations were interrupted in 2021 due to rampant oil theft in Nigeria. According to estimates by the Nigerian National Petroleum Corporation Limited (NNPCL) and the Ministry of Petroleum, the country loses between 200,000 and 400,000 barrels of crude oil daily to theft, severely impacting its production capabilities.

Despite Nigeria's average crude production being 1.35 million barrels per day in August, it consistently fell short of its OPEC quota of 1.5 million barrels per day throughout 2024. To combat this theft, the federal government has engaged local security contractors, although the effectiveness of these measures remains uncertain.

Moreover, persistent theft and security challenges in the Niger Delta have led to the exit of several multinational oil companies from onshore operations, including Exxon Mobil, ENI, and Shell, as they shift focus to offshore and deepwater operations to mitigate risks.