BREAKING: OML42: NPDC/NECONDE Flow Stations Shutdown In Delta

Two flow stations operated by Nigerian Petroleum Development Company, (NPDC), a subsidiary of NNPC, Nigerian National Petroleum Corporation/NECONDE joint Venture (JV) Oil Mining Licence (OML42), have been shutdown in Odidi and Batan communities in Warri Southwest local government area of Delta State.

The closure followed protest by aggrieved host communities’ members who last week handed the oil firm ultimatum over alleged gross negligent and slavery treatment by the oil firms to the people of the area.

Sources disclosed that the oil facilities were shut down following frosty relationship between host communities and companies operating in the area. 

One of the locals who preferred anonymity, revealed that the flow stations in Odidi and Batan were shut down Saturday evening due to persistent failure of the oil companies to honour agreement reached with host communities and indigenous contractors. 

According to the source, some of the demands of the host communities include full payment of all monies owed by AMT, NECONDE. 

“The communities also wants Neconde and its subsidiaries to vacate the field”, the source said, adding that NPDC should take full operations as the communities have lost confidence in NECONDE which they blamed for the many failures of oil companies to the host communities.

BIGPEN recalled that one of the leaders of the area, Chief S. Y. Mamamu had issued a 24 hours ultimatum to NECONDE last week over alleged failure by the oil firms to honour agreement with the host communities and the payment of indigenous contractors.

This was contained in an open letter addressed to President Muhammadu Buhari and signed by Chief (Dr) S.Y. Mamamu (UNPA), Ijaw-Toro Ebediwei of Warri, President of Owners of Oil Producing Communities, and the Ijaw National Congress Leader, and the Leader of OML 42 Host Communities on Behalf of OML42 Host Communities.

The letter reads: “President Muhammadu Buhari, the Commander in Chief of the Armed Forces of the Federal Republic of Nigeria.

“I am aware that you are a Military and Civilian President of our great country Nigeria; as a result, you know the characters of the living and dead. Agricultural lands, Fishing Resources, Mineral Resources and as such God can use you to promote this country’s resource.

“We are giving Necode Energy Companies to vacate Odidi Federated Community and OML 42 within 48hrs.

“Neconde Energy Companies has been operating in Odidi Federated Community and OML 42 at large with some companies but to mention few; Obijackson Group of Companies, Impack, Nestoil, White Dove, A&G dredging Hammacorp, EWT, etc.

“Neconde Energy Companies are in operation in Odidi Federated Community refusing to pay indigenous contractors and also dues on the agreement of Odidi Federated Community, and OML 42 Host Communities.

“We are also calling on the Director of State Security, EFCC, ICPC and other Government Agencies to investigate these companies so it may not cause communal crisis with the OML 42 Host Communities.

“We will be force to take action for the time duration mandated given to Necode Energy Companies,” the statement added.

As of time of filing this story for publication, no official statement on the development has been issued by the oil firms. 

The ownership structure of OML 42 is in the ratio of 45% (Neconde): 55% (NPDC). NPDC had operated the asset between 2011 and April 2015 and in May 2015, NECONDE was awarded the operator of the asset on behalf of the NECONDE/NPDC Joint Venture.