Connect with us

Business

Lawyers Allege Neconde Energy Limited Of Crude Oil Theft, Petition Senate Ad-Hoc Committee

Published

on

Senate

A group of lawyers have alleged Neconde Energy Limited of crude oil theft in the Niger Delta region of Nigeria.

In a petition by the lawyers to the Senate Ad-Hoc committee, they alleged Neconde Energy Limited of oil theft from the Ugo Ocha export terminal at OML 42 in the Niger Delta region.

Why Nigeria Cannot Make Any Progress- Oyegbami

The OML 42, an oil field located in the swamps of the western Niger Delta, is operated by Neconde Energy Limited. The terminal has four flow stations with a combined production capacity of around 30,000 barrels of oil per day (bpd).

In the petition, the lawyers complained that an average of one million barrels of Nigeria’s crude oil is taken away monthly by the Neconde Energy Limited as a result of a lack of accurate measurement, owing to the absence of meters at this export terminal.

In the petition spotted by www.theoctopusnews.com, and presented at the committee’s investigative hearing on “Oil Lifting, Theft and the Impact on Petroleum Production and Oil Revenues” on 21 September, the lawyers said since the terminal was established in Neconde Energy Limited has frustrated efforts by the federal government to install a metering system also known as LACT Unit at the terminal.

They also claim that the company continues to operate the terminal in full violation of the federal government’s requirement for accurate custody transfer measurement at all export terminals.

The petition, dated 21 September, was submitted through O. F. Emmanuel & Co. It comes on the heels of oil theft and vandalism in the Nigerian oil sector.

It will be recalled that the Nigerian National Petroleum Company Limited (NNPCL) disclosed that it loses 470,000 bpd of crude oil amounting to $700 million monthly due to oil theft.

In the petition signed by the Principal Partner, Oluwatosin F. Emmanuel, the lawyers, alleged that as of the time of the petition, there are no meters at the Ugo Ocha export terminal to accurately determine the volumes of Nigeria’s crude oil sold to foreign buyers.

They maintain that an enormous amounts of revenue to the tune of $15 million per month accruable to the Federal Government of Nigeria could potentially be lost due to the absence of a functional measurement system for exported crude oil volumes at this terminal.

Further, they also claimed that Neconde Energy Limited continues to operate the terminal in flagrant violation of the federal government’s mandate for accurate custody transfer measurement at all export terminals.

“Been aware of this monumental revenue loss, the government of Nigeria, through NUPRC, recently placed a ban on all exports of crude oil from NECONDE’s OML 42 UGO Ocha terminal until a functional LACT Unit is installed on the terminal,” part of the petition read. “In spite of the subsisting government ban, NECONDE continues to export Nigeria’s crude oil illegitimately from the Ugo Ocha terminal while frustrating every effort to install a LACT Unit on the terminal.”

They asked the Senate panel to ensure that the ban on exports from the Ugo Ocha terminal is enforced and that the company is compelled to install a 1.25 million barrels per day LACT Unit (metering system).

The lawyers further prayed the committee to direct the Nigerian Navy to “arrest and detain the vessel “MT COPPER SPIRIT” which is currently lifting oil at the Ugo Ocha terminal, direct the NMDPRA and NUPRC to cancel all barging permits granted to NECONDE and NPDC until a LACT Unit is installed and commissioned at the Ugo Ocha terminal as directed by NUPRC and direct the Nigeria Ports Authority to prohibit the movement of crude oil barges and tankers to and from the Ugo Ocha terminal.”

Neconde, an indigenous company is described as a leading independent oil and gas company in Nigeria, with stakes in developed oil fields and gas reserves in the Niger Delta.
The company was incorporated on November 26, 2010, as an independent oil & gas company serving as a special purpose vehicle for the acquisition and development of petroleum assets.
Neconde’s core areas of operation are the exploration and development of oil and gas assets for the production and sale of petroleum products in Nigeria to generate revenue.
Its board of directors includes Dr. Ernest Azudialu-Obiejesi Chairman, Monday Raymond Okoro Managing Director, Ubaka Emelumadu Director, and Wolfgang Goetsch Director.
Share
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Ad

Facebook

Trending

Copyright © 2019, February13 Media