Firm Alerts On $558m Assets’ Threat …Over Severance Package

The management of Neconde Energy Limited, a member of Obijackson Group and operator of the Oil Mining Lease (OML 42), has raised alarm over threat to its $558 million (about N200.8 billion) assets.
The Managing Director of the company, Mr Frank Edozie, disclosed this during an interactive session with newsmen yesterday in Lagos while cautioning PENGASSAN over picket plans on May 15.
Edozie alerted the public on plans by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to picket the company over issues relating to severance package.
He explained that in March 2016, Neconde and PENGASSAN entered into an agreement over welfare issues, including increased severance package, transfer and 13th month allowance with a caveat that the agreement will only be implemented once production hits 70,000 Barrels Per Day (BDP).
However, he expressed surprise that despite the fact that the current production level remained at 15,000 bpd, PENGASSAN in alliance with some workers of Neconde have concluded arrangement to picket the company on May 15.
The Neconde boss said that a component of its strategic goal for the year to achieve the 70,000bpd target has led it to develop “barged production” as an alternative to crude evacuation using the Trans Forcados Pipeline which has been out of service since Feb. 13, 2016.
“We have also undertaken some strategic steps, such as rehabilitation of Batan and Odidi Flow Stations to enable the achievement of our targeted peak gross production rate.
“Revamping of Jones Creek and Egwa Fields for work over of existing wells and development of other infrastructure which includes refurbishing a gas Central Processing Facility (CPF) in Odidi as well as commencement of re-entry of Odidi, Jones Creek fields Egwa 1 & 2.
“Despite the idle state of the asset, he said the company has remained committed to workers welfare and prompt the payment of salaries, especially during the period when oil prices remained at its lowest ebb.
“Additionally, we had to relocate our operations to Warri from Lagos, for us to be closer to the base to better enable us to meet our goals of increasing our contributions to the Nigerian economy.
“Expectedly, this relocation meant redeployment of employees to the new location, and this was executed in a manner that the associated inconveniences to employees were duly considered and properly mitigated,” he said.
According to Edozie, “we are currently in talks with the leadership of PENASSAN to ensure that we reach a mutually beneficial agreement on some of the demands presented by the association.