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Tag: Neconde

  • Nestoil, Neconde, Ernest Obiejesi and Nnenna Obiejesi’s Appeals suffer major setback

    Nestoil, Neconde, Ernest Obiejesi and Nnenna Obiejesi’s Appeals suffer major setback

    • Supreme Court orders suits back to Court of Appeal

    • Judge cautions debtors must repay debts rather than file cases

    The Supreme Court sitting in Abuja today in a panel presided over by his lordship Justice Inyang Okoro JSC ordered parties to go back to the Court of Appeal for that Court to resolve the issue of legal representation and thereafter report back on the 26th January 2026.

    Other Justices on the panel concurring with the Presiding Justice were Justice Jauro JSC, Justice Sankey JSC, Justice Adumehin JSC and Justice Sadiq Umar JSC.

    The Supreme Court also strongly cautioned Counsel that in matters of debt recovery, the debtor should simply be encouraged to pay the debt rather than filing frivolous Appeals/Applications.

    Purporting to represent Neconde was Chief Olanipekun SAN  and for Nestoil Muiz Banire SAN whose competence and authority is being challenged by Ayo Olorunfemi SAN   leading Ame Ogie for Neconde and  Ayoola Ajayi SAN leading MB Ganiyu for Nestoil.

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    Appearing for Ernest Azudialu-Obiejesi was Chinonye Obiagwu SAN while Kehinde Ogunyumiju SAN leading Ademola Abimbola SAN and Chikasolu Ojukwu SAN appeared for Nnenna Obiejesi.

    Also in Court was the Receiver/Manager Mr. ABUBAKAR SULU-GAMBARI SAN.

    Representing FBNQUEST Merchant Bank Limited & First Trustees were Babajide Koku SAN, Victor Ogude SAN, Omosanya Poopola SAN leading Toheeb Ipaye, Kamaal Fagbemi, Kehinde Wilkey and Buchi Ofulue.

    Today’s proceedings sends very strong signals to debtors and counsel to debtors that a debt owed must be paid.

  • OML 42: Neconde raises oil production to 50,000 barrels daily

    OML 42: Neconde raises oil production to 50,000 barrels daily

    Nigeria’s crude oil production has received a major boost, with Neconde, a subsidiary of Nestoil and one of the country’s foremost indigenous independent producers hitting 50,000 barrels per day on Oil Mining Licence (OML) 42 as of May 2025.

    With the company’s Financial and Technical Services Agreement (FTSA) solidly in place, industry data obtained showed that Neconde has now steadily increased output in the last 24 months by over 100 per cent.

    The data indicated that the implementation of the FTSA solution raised production from an average of 15,000 bpd in 2023 to 25, 000 bpd in 2024 and to 2025 year-to-date of 50,000 bpd and aspiration to exit this year at over 70,000bpd.

    Besides, the company is expected to hit 120,000 bpd in the next 48 months, deploying its massive human resource and technical expertise to grow the asset.

    It was learnt that the company has mostly been able to increase this output, with its philosophy of excellence in service delivery, fair market price, focus on cost discipline as well as optimisation and elimination of non-value adding processes.

    Furthermore, whilst developing and empowering local capacity development as well as working with local communities, the FTSA is enabling the company to put in place the desired governance in terms of processes and procedures.

    The arrangement, it was understood, is also ensuring transparency and accountability, direct access to international oilfield services like Shlumberger (SLB) and Haliburton as well Original Equipment Manufacturers (OEMs), a strategic advantage that will help the company achieve its target crude production in the coming years.

    The initial aggressive development and intervention campaign successfully executed in 2024 also enabled a second campaign in 2025, with imminent mobilisation workovers and infill drilling to support the production growth aspiration of over 120,000 bpd.

    Set to commence in June 2025, its first rig-based production growth programme since the acquisition of the asset by Neconde in 2011, will enable rapid facility upgrades and life extension. Also, the asset is opening up one of the fields that have not been re-entered and produced since acquisition in 2011, Egwa 2 field, with huge oil and gas reserves.

    Although before Shell exited, OML 42 had reached a daily production of circa 250,000, however it was dormant by the time Neconde took it over, after community disturbances that led to facility shutdown around 2005/ 2006.

    Specifically, in the last few years, the company, according to available information, has built capacity, especially helped by the FTSA model which was activated in 2022, and could do even more with a little encouragement.

    Nigeria currently faces several challenges in raising its oil production, a development that has reduced the volume of crude reaching export terminals and has frequently disrupted operations. Underinvestment in upstream infrastructure is also a significant issue which has led to facility integrity degradation, extending downtime and production deferments due to frequent equipment failures and poor maintenance practices.

    While revitalising the existing but non-functional gas compression facility, it was learnt that the drilling programme also involves gas developments to support the local gas supplies, eliminate gas flare and improve stakeholder value extraction, as the asset has huge untapped gas reserves. Many oilfields and facilities suffer from neglect, with limited capital expenditure on exploration and maintenance.

    But despite the significant bottlenecks, Nigeria has embarked on an ambitious initiative known as ‘Project 1 Million Barrels Per Day’, aiming to significantly boost its crude oil production. This project seeks to elevate daily output from a baseline of approximately 1.46 million barrels in October 2024 to a long-term target of 3 million barrels bpd. It is believed that with some support, firms like Neconde could help achieve this target.

    With a new NNPC management team led by Mr Bayo Ojulari in place, with a track record of performance in their previous endeavours in the sector, it is believed that to achieve the targets set by President Bola Tinubu, there may be the need to look inwards.

    Tinubu had outlined ambitious targets to revitalise Nigeria’s oil and gas sector and bolster the nation’s economy. The key objectives set for the new NNPC leadership include: Elevating crude oil production, expanding gas output; enhancing refining capacity as well as attracting the right investment to the sector.

  • Neconde Energy Ltd denies impoverishing host community

    Neconde Energy Ltd denies impoverishing host community

    Neconde Energy Ltd, an independent oil and gas company with stakes in developed oil fields and gas reserves in the Niger Delta and Joint Venture partner of the NNPC Exploration and Production Limited (NEPL) on the OML 42 Oil Asset, has refuted allegations of impoverishing its host communities in the Niger Delta.

    It claimed the reports are not only false and unfortunate but are a product of blackmailers while setting the records straight.

    In a rebuttal by its legal department, the company, which had been managing the OML 42 oil asset as a joint venture partner of the NNPC Exploration and Production Limited, (NEPL) since 12 years ago, said: “While we understand that any reasonably informed Nigerian or organisation need not dig too deep to ascertain the true situation in OML42; the growing audacity of Ezekiel Kagbala (FocalPoint Reports) and the clandestine sponsors of his publications, in what appears to be an increasing display of willful intent to misinform the public and a malicious intent to malign business and persons; necessitates those records are set straight.”

    The company declared that it will not be deterred from its zero tolerance for corruption in the running of the asset and insistence on transparent developmental programmes such as the full implementation of the PIA (Petroleum Industry Act) for the benefit of the host communities. “Monies meant for developing the community must be deployed solely for that purpose. It must not enter private pockets. This is our stand,” the statement avers.

    Continuing, the company, which has invested significant amounts in the asset with the support of astute professionals, businesses, and financial institutions, explained that the Nigerian Petroleum Industry Act 2021 makes provisions for host communities that encourage social and economic development and aims to promote cooperation between the host communities and the petroleum asset operators.

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    It added that the PIA act stipulates that settlors (NEPL for OML 42) are required to make an annual contribution to the applicable community of 3% of its actual operating expenditure of the preceding year in the upstream petroleum operation affecting the community but “The non-implementation of the law to support the development of the community within OML 42 is best provided by the accountable managers for OML 42 in the employ of NNPC Exploration and Production Limited, (NEPL).”

    It explained before the PIA, it had funded the GMOU implementation and sustained the peace bonus that supported the payment of allowances to teachers in OML 42 communities, electrification projects, riverine school boats for primary schools, and training of community workers who have now been converted to E & P field professionals in OML 42 among other things.

    While describing the reports as ‘greed-driven contract racketeering in collusion with certain elements’, Neconde Energy Ltd stated that the community leadership, opinion leaders and responsible members of the community have condemned and dissociated themselves from the false reports.

    The company maintained that the sustained blackmail of private investors and institutions would not deter it from doing only what is right and urges the public to disregard the falsehood being peddled by ‘these bastions of perfidy.’