Neconde initiates arbitration case against Shell over OML 42 production

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

The oilfield in question, Oil Mining Lease (OML) 42, is ironically also at the center 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 said the company bought a stake in OML 42 from Shell in April 2011. He alleged the oil giant however continued to produce crude there until the petroleum ministry approved Neconde’s license in November that year while nothing was given to Neconde for the period.

Edozie, who spoke in an interview in Lagos, said Neconde launched the arbitration case in London late last year in an attempt to recoup money. He did not disclose the sum being sought. A Shell spokesperson said there was “arbitration between Neconde and Shell” but no further details were given.

 

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