Nigerian oil firm Neconde mounts arbitration case against Shell


Nigerian oil firm Neconde mounts arbitration case against Shell

Nigerian energy company Neconde has launched an arbitration case against Royal Dutch Shell , the West African firm’s chief executive said, alleging the oil major continued to lift crude and failed to remit funds after a lease had been sold.

The oilfield in question, Oil Mining Lease (OML) 42, is also at the centre of corruption allegations. Shell filed a criminal complaint against a former employee in late March over suspected bribes in the $390 million sale of the field.

Neconde CEO Frank Edozie told Reuters the company bought a stake in OML 42 from Shell in April 2011. He alleged the oil giant continued to produce crude there until the petroleum ministry approved Neconde’s licence in November that year.

“It was producing and lifting crude although the asset had, by deed of transfer, moved to Neconde. Shell lifted the crude and held the proceeds – nothing was given to Neconde. That is the matter we are taking to the court of arbitration in the UK,” he said. Read More

Leave a Reply

Your email address will not be published.