Neconde Energy finds alternative to Trans Forcado pipeline, terminal

Neconde has perfected arrangement to avoid   depending on the Trans forcados Pipeline and terminal for the evacuation of its crude oil to the outside world following the unreliability of the pipeline occasioned by      incessant militant attacks and vandalism.

Consequently, it has developed higher capacity barges that would enable it evacuate about 40,000 barrels of crude oil a day, and this would come to effect in the   next two months and by the end of the year this capacity is expected to have been increased to 60,000 barrels.

The company currently is just able to evacuate about 15,000 barrels on daily basis with such arrangement.

The company however plans to re-enter the Eqwu field which is expected to boost its production level significantly.

According to Frank  Edozie , chief executive  officer of Neconde, who spoke on the efforts so far reached with  its host community,  Gbaramatu which is claiming  that  it is entitled to five per cent share in the company  which operates asset, Oil Mining Lease (OML)24,    he said  the two parties are still dialoguing over  the matter, saying  that the  company has requested that the community should   bring forth any document  that is relating to that effect at  the next  meeting.

On the claims by the community that when Shell was operating the fields it put in place some social amenities which made the community to have some sense of belonging, he said: “When shell was operating the four fields they were producing about 250,000 barrels per day. But since we took over the assets we have not been able to produce more 17,000 barrels per day because the problems created by the activities of militants”.

He said that the company is committed to Corporate Social Responsibilities in its areas of operations but that its ability has been impaired significantly by the disruptions to its operations.

Given a historical perspective of the  company,  Edozies said   46 per cent of the assets  were  acquired by Necode in 2012 and  it was  the believe of the company that  was going  to operate the assets.

But this did not happened as the Nigerian National Petroleum Corporation (NNPC) which has 60 per cent  of the assets decided to hand over the  operatorship to its  subsidiary, the Nigerian Petroleum Development Company (NPDC).

This was the basis of bidding for the assets, he said.

The issue of operatorship was however resolved    February  this year when Neconde and the NNPC finally formed what is known as  management team with the two parties fully represented at the management board of the company.

He said the company has not been able to realize revenue from assets because of the  challenges it has been facing because of vandalisation of the Trans Forcado Pipeline which  was down  betweens 2013  and June, 2017, adding that the impact of not being able to produce is that  the company  could not  earn revenue to pay its  loans and even interests on the loans. As  result of this, projections are not met.

Olusola Bello