Neconde Energy Debunks Alleged Impoverishment of OML 42 Host Communities

Peter Uzoho

Neconde Energy Limited, the joint venture partner of the Nigerian National Petroleum Company (NNPC) Exploration and Production Limited (NEPL) on the oil mining lease (OML) 42, has refuted allegations of impoverishing its host communities in the Niger Delta.

A foremost independent oil and gas company with stakes in developed oil fields and gas reserves in the  Niger Delta, Neconde Energy, in a statement issued yesterday and signed by its legal department, claimed that the reports were not only false and unfortunate but were a product of blackmailers.

While setting the records straight, the company, which had been managing the OML 42 oil asset as a joint venture partner of the NEPL since 12 years ago, noted that remaining silent when truth was  viciously violated by falsehood was not a strong suit of the promoters of Neconde Energy Limited.

It said when wilful and harmful falsehood masquerading as investigative journalism by a blog, alleged that Neconde Energy Limited was impoverishing its host communities in the Delta, the company’s management now sought to set the records straight.

“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 the reporter 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 said.

The company declared that it would 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 Petroleum Industry Act (PIA) 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 averred.

Continuing, the company stated that the PIA 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.

Neconde stated further that the PIA stipulates that settlors (NEPL for OML 42) were required to make an annual contribution to the applicable community of three per cent 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)”, the company said.

Notwithstanding, Neconde stated that before the PIA, it had funded the Group Memorandum of Understanding (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 averred that the community leadership, opinion leaders, and  responsible members of the community had 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 urged the public to disregard the falsehood being peddled by “these bastions of perfidy.”