Nembe Exploration and Production Company Limited has clarified its role in the recent recovery of outstanding pipeline transportation fees by the Economic and Financial Crimes Commission (EFCC), insisting that the recovered funds were owed to its joint venture (JV) and not taken from the company.\n<\/p>\n
The company, formerly known as Aiteo Eastern Exploration and Production Company Limited, said recent media reports linking it to the EFCC\u2019s recovery of funds from oil companies had created a misleading impression about its involvement in the matter.\n<\/p>\n
In a statement issued on Friday, Nembe explained that it operated the Nembe Creek Trunkline (NCTL) on behalf of its joint venture with the Nigerian National Petroleum Company Limited (NNPCL).\n<\/p>\n
According to the company, it provided crude oil transportation services to third-party operators, including Newcross Exploration and Production Limited, which subsequently accumulated outstanding transportation fees.<\/p>\n
\u201cThe position is straightforward. Nembe, as operator of the Nembe Creek Trunkline (NCTL) on behalf of its Joint Venture (JV) with the Nigerian National Petroleum Company Limited (NNPCL), provided crude oil transportation services to third-party operators, including Newcross,\u201d the statement said.\n<\/p>\n
\u201cOver time, outstanding transportation fees arose from the use of the pipeline, which Nembe was responsible for pursuing on behalf of the JV.\u201d\n<\/p>\n
The company attributed the accumulation of the outstanding payments to operational challenges that affected the oil and gas industry over several years, including crude oil theft, pipeline vandalism, insecurity and disruptions associated with the COVID-19 period.<\/p>\n
It explained that the challenges affected crude transportation through the NCTL and made it increasingly difficult to reconcile volumes delivered by individual operators.<\/p>\n
Nembe said it had made several attempts to recover the outstanding payments before the EFCC intervened, including issuing direct demands, sending correspondence and engaging the affected pipeline users.\n<\/p>\n
However, the efforts did not result in the full settlement of the outstanding obligations, prompting the EFCC\u2019s subsequent intervention.\n<\/p>\n
\u201cThe EFCC\u2019s subsequent intervention brought its statutory investigative and recovery powers to bear on the outstanding obligations, facilitating the recovery of funds that Nembe had already sought to recover on behalf of the JV,\u201d the company stated.\n<\/p>\n
It stressed that the EFCC\u2019s intervention was directed at recovering money owed to the joint venture and should not be interpreted as a recovery of funds from Nembe. <\/p>\n
\u201cThe EFCC\u2019s intervention in respect of these transportation fees was therefore aimed at recovering money owed to the JV, not money from Nembe,\u201d it said.\n<\/p>\n
\u201cNembe was the operator responsible for pursuing the outstanding payments on behalf of the JV, not the defaulting party in the underlying transactions.\u201d<\/p>\n
The company added that the recovery represented the settlement of outstanding payments for services already rendered rather than evidence of wrongdoing or financial misconduct.\n<\/p>\n
Nembe also maintained that it was not indebted to the joint venture in respect of the pipeline transportation fees under consideration.\n<\/p>\n
\u201cChanges in EFCC leadership over the years may have contributed to a misunderstanding of the circumstances surrounding the matter and the respective roles of the parties involved,\u201d the statement added.\n<\/p>\n
The company further addressed a separate issue concerning stamp duty arising from the acquisition of Oil Mining Lease (OML) 29 and the Nembe Creek Trunkline.\n<\/p>\n
It disclosed that the matter remained subject to an ongoing reconciliation process with relevant statutory authorities, adding that discussions were continuing to establish the applicable obligations and amounts.\n<\/p>\n
According to the company, the stamp duty issue was entirely separate from the recovery of outstanding pipeline transportation fees and should not be treated as part of the same matter.\n<\/p>\n
Nembe welcomed the EFCC\u2019s recovery of the outstanding transportation revenues, saying the funds were properly due to its joint venture.<\/p>\n
The company expressed hope that subsequent reports would accurately reflect its role in the transactions as the operator that provided the transportation services and pursued payment on behalf of the joint venture.\n<\/p>\n