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Thursday, April 12, 2018
Nigerian indigenous firm, Neconde, initiated an arbitration case against Shell. According to the company’s CEO, Frank Edozie cited in a Reuters report, Shell continued to lift crude from OML 42 and failed to remit funds after a lease had been sold.
“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,” Edozie was quoted by Reuters as saying.
Neconde bought a stake in OML 42 from Shell in April 2011 however, according to Edozie the major E&P firm continued to produce crude there until the petroleum ministry approved Neconde’s license seven months later.
This is not the only controversary surrounding OML 42, Shell filed a criminal complaint against a former employee in late March over suspected bribes in the $390 million sale of the field.
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