Encomium
Neconde Energy Limited and its Joint Venture Partner – the National Petroleum Development Company (NPDC) in Oil Mining Lease (OML) 42 have begun production and delivery of gas to the domestic market through the Nigeria Gas Marketing Company. This is in fulfilment of the commitment made by the Group Managing Director of Nestoil Group and Chairman of Neconde Energy Limited, Dr. Ernest Azudialu-Obiejesi, during the last Nigeria Gas Association Conference.
Dr Obiejesi had promised that the NPDC/Neconde JV will deliver about 40MMScf per day to the domestic gas supply network. This is now being fulfilled with the successful startup and operation of Main Compressor Module 1 (MCM1) of the Odidi Gas Processing Facility. He said the development is a milestone for indigenous companies operating in the Oil and Gas sector. He recalled that OML 42 from which gas is now being produced was acquired in 2011 but was fraught with a lot of challenges at the time it was sold by the IOCs. “The fact that a wholly indigenous Joint Venture (JV) has progressively revived this asset speaks to the capacity of indigenous companies in the Oil & Gas sector if given the right opportunities, ‘’ said Dr Obiejesi.
OML 42 is located onshore West Delta covering an estimated area of 814 square kilometres. OML 42 has 7 fields which have produced hydrocarbons and 5 undeveloped discoveries. The existing assets, infrastructure and support facilities in OML 42 include flow stations at Jones Creek, Egwa, Odidi and Batan. Neconde, a subsidiary of the Nestoil Group is an indigenous Nigerian company with offices in Lagos, Warri, Port Harcourt and Abuja.
Neconde is an independent Nigeria oil and gas company serving as a special purpose vehicle for the acquisition and development of petroleum assets. In January 2011, the company participated and emerged successful in the bid for the acquisition of 45% stake in OML 42 previously held by Shell Petroleum Development Company Limited. Neconde’s status as an indigenous company with an excellent management team offers a viable option through which the currently under developed reserves of the Niger Delta could be brought into production with attendant economic benefits for the country.
