Nembe Exploration and Production Company Limited has clarified that funds recently recovered by the Economic and Financial Crimes Commission (EFCC) from oil companies were outstanding pipeline transportation fees owed to its joint venture with the Nigerian National Petroleum Company Limited (NNPCL), not money recovered from the company.
The company, formerly known as Aiteo Eastern Exploration and Production Company Limited, said media reports linking it to the EFCC recovery had created a misleading impression about its involvement.
In a statement issued on Friday, Nembe explained that it operated the Nembe Creek Trunkline on behalf of its joint venture with NNPCL and provided crude oil transportation services to third-party operators, including Newcross Exploration and Production Limited, which accumulated unpaid transportation fees.
According to the company, crude oil theft, pipeline vandalism, insecurity and disruptions during the COVID-19 period affected operations and made it difficult to reconcile crude volumes delivered by individual operators.
Nembe said it made several attempts to recover the outstanding payments through direct demands, correspondence and engagements with the affected pipeline users, but the efforts did not result in full settlement.
It explained that the EFCC subsequently intervened, using its statutory investigative and recovery powers to facilitate the collection of the outstanding funds on behalf of the joint venture.
The company stressed that it was not the defaulting party in the transactions, but the operator responsible for pursuing the payments on behalf of the joint venture. It described the recovery as settlement for transportation services already rendered, rather than evidence of wrongdoing or financial misconduct.
Nembe also clarified that a separate stamp duty matter relating to the acquisition of Oil Mining Lease 29 and the Nembe Creek Trunkline remained under reconciliation with relevant statutory authorities. It said the issue was unrelated to the pipeline transportation fee recovery.
The clarification follows an earlier report that the EFCC recovered $3 million and N1.303 billion from Aiteo Exploration and Production Limited and Newcross Exploration and Production Limited over unremitted statutory payments to the Federation.
Nembe welcomed the recovery, expressing hope that subsequent reports would accurately reflect its role in providing pipeline transportation services and pursuing outstanding payments on behalf of its joint venture.
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