Nigerian energy company, Neconde, has taken Shell to the International Court of Arbitration to recoup money which, it alleges, Shell earned illegally from Neconde’s asset, Oil Mining Lease (OML) 42.
According to a Reuters, the Neconde CEO, Frank Edozie, Neconde bought a stake in OML 42 from Shell in April 2011. Despite that, Edozie alleged, Shell continued to produce crude there until the petroleum ministry approved Neconde’s license in November that year.
Edozi told Reuters, “It (Shell) 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.”
Neconde launched the arbitration case in London late last year in an attempt to recoup money, whose amount has not been disclosed.
He alleged that Shell produced, lifted and sold improperly oil belonging to Neconde.
When asked for his organisation’s view, a spokesperson from Shell denied any knowledge of arbitration between Neconde and Shell.
Coincidentally, Neconde is pursuing the arbitration case at the time it is under significant pressure to keep up payments to banks, according to Reuters.
“We are looking for between $500 million and $600 million,” said Edozie.