Crude Oil Fraud: How Nestoil, Neconde Impoverished Host Communities in Delta (Part 1)
EDITORIAL
By Ezekiel Kagbala
Neconde Energy Limited is a consortium formed by Nestoil Plc and other companies. Nestoil being behind Neconde Consortium, acquired 45% of the Oil Mining Licence (OML) 42 in the Niger Delta, Warri Southwest Local Government Area of Delta State but showed no interest in the well-being of the host communities within the asset.
Apart from oil spills from exploration that have negatively impacted on oil-producing communities vis a vis the environmental degradation, health and agriculture thus contributing to their poverty, the company created by Nestoil has visibly impoverished the people with its high level indebtedness to contractors who are now living with dim hope of getting payments for the huge amounts owed them.
All available information reveal that contractors, workers and host community youths are suffering in silence while Nestoil's Managing Director, Ernest Azudialu-Obiejesi is busy buying private jets as if he is buying bread for consumption.
Dr. Ernest Azudialu-Obiejesi, MD of Nestoil
Understandably, Ernest is business-oriented. He is a smart investor and he is good at expanding his investments. But the infamy lies in the use of Nestoil to push Neconde that is currently responsible for the non-payment of local contractors, thus sentencing the host communities to poverty!!
Owners of the resources now suffer degradation, squalor and poverty. As such, it will not be out of place to State that the Nigerian government needs to do the needful; to consider revocation of the company's license for good.
It is unthinkable that there is no project that worths one billion naira in any of the host communities where Ernest Azudialu-Obiejesi had made fortunes running into over two trillions.
Observers are of the belief that what appeared to be dubious and fraudulent was that, after the renewal of the Oil Mining License of the Company, Neconde quickly used the asset to secure a loan facility worth $640 million.
International and local lenders referenced Neconde as having perfected that humongous loan from Access Bank, Fidelity Bank, Zenith Bank as well as First Bank (UK) Limited, the Africa Import Export Bank (Afrexim), Africa Finance Corporation (AFC) and Glencore Energy (UK) Limited as the lenders to Neconde.
It became a matter of concern, however, that on obtaining the loan, Ernest promised to invest same in the asset for the purpose of increasing oil production, yet nothing was achieved. Furthermore, in a bid to run out of the debts, Neconde immediately created another company, called Amaranta and could not solve the problem. Currently Amaranta has become a liability also feeding from the asset!
So far, investigations revealed that Nestoil, Amaranta and Neconde, all are the same company. They are just self-serving duplications to take away the region's resources without human face. And, as at the last count, they merely resorted to paying just one month out of several months owed the people.
No wonder, the infamy of their dubiousness has produced unending protests, agitations and distrust leading to regular shutting down of their operations.
Sometime ago, local contractors and staff working for OML 42 staged a protest in demand for their backlog of four years of salaries and emoluments. During that protest, Nestoil and Neconde oil firms were accused of owing them salary arrears and emoluments.
From all indications, it now looks as if Ernest could get away with all these sharp practices due to the noticeable lack of integrity of some community leaders notorious for double-dealing and predilection for self-aggrandizement.
Ernest Azudialu-Obiejesi is the owner of Amarata, Nestoil, Impac Oil and Gas, Jonecreek hydrocarbon, B&Q Dredging, and White Dove Shipping Company, among others. All his companies are afloat with Niger Delta oil money hence, he owes his host communities the duty of care.
Likewise, he should pay the contractors, initiate skill Acquisition Programmes for the community youths and support small-scale infrastructure such as school electricity and drinkable water for the host communities.
These, undoubtedly, are humble ways to reciprocate good gestures from the amiable hosts as against the condemnable action of impoverishing them.
Ezekiel Kagbala
Chief Editor
Contact/Feedback: 08038905146
