Helicopter Operators’ Threat May Crash Oil Production

The federal government is weighing the consequences of imposing landing fees on Helicopter operators in the country’s oil and gas sector.

The country is estimated to lose over 1.1 million barrels of oil per day (mbd) as operators have vowed to down operations if the government implements the new charges on their operations.

It is estimated that 95 per cent of helicopter operations in Nigeria is connected to oil and gas services, and grounding operations may plummet crude output by 300 barrels a day, bpd.

About 90 per cent of Nigeria oil and gas production activities are conducted deep offshore where helicopter is the only viable means of daily transportation to and from the facilities.

Nigeria’s daily crude oil production output is reportedly around 1.3 million bpd and the action will force a drop of about 300 bpd.

The Nigeria Civil Aviation Authority (NCAA) has approved a heliport certification list with oil production helidecks constituting over ninety per cent of the 105 listed on the document dated April 2024.

The ministry of Aviation and Aerospace Development, said it is imposing additional charges on helicopter landing cost in Nigeria via a recent memo which directed helicopter operators to compulsorily pay helicopter landing fees at all Nigerian aerodromes, helipads, airstrips, floating production storage and offloading (FPSO) units, floating storage and offloading (FSO) units and other oil platforms.

According to the memo signed by the minister, Festus Keyamo, the landing fees would exclusively be collected by a private company, NAEBI Dynamic Concept Limited.

“It is imperative that all operators and stakeholders fully comply with this mandate, by granting total access to Messrs NAEBI Dynamic Concept Limited for the collection of the levy, effective immediately, Non-compliance with this directive will constitute a breach of this mandate and will be met with appropriate sanction,” the memo stated.

Keyamo in a recent TV interview explained that he inherited the process and approved it because it would generate more revenue for the federal government.

He further stated: “The company will put the infrastructure in place, employ personnel and remit to the federal government. So, everything will be going to the federation account and the company will get their cut.”

In reaction, helicopter operators vowed to resist the payment and threatened to ground their operations if the federal government insisted on the payment of the landing fees.