Elcrest, Neconde, Win Operatorship; NPDC Staff Push Back - Africa’s premier report on the oil, gas and energy landscape.

Elcrest, Neconde, Win Operatorship; NPDC Staff Push Back

Just as the NPDC branch of the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) was pushing back on the Nigerian Government’s granting of operatorship of the Oil Mining Lease(OML) 42 to Neconde, the Minister of Petroleum went ahead to grant the wishes of Elcrest for operatorship of OML 40.

Neconde and Elcrest purchased 45% stakes in OMLs 42 and 40 respectively from Shell, TOTAL and ENI in 2012, but the operatorship of the assets were not granted with the purchases. The two companies, along with First Hydrocarbon Limited, Shoreline Resources and NDWestern, who bought stakes in OMLs 26, 30 and 34 between 2011 and 2012, have lamented NPDC’s lack of capacity to continue as the operator of the acreages they purchased from the Shell-led consortium.

Their argument is that they could have gotten more production out of the fields than NPDC was doing as operator. The government appears to have finally agreed with them and the perception in the industry is that the remaining three companies will soon have their prayers for operatorship answered. The employees union, however, is asking for a reversal of the two operatorships that have been granted.

PENGASSAN commenced a limited-two hour per day -strike on Monday, May 4, 2015, which lasted until May 11, 2015. It then gave a three day warning that should end by midnight of May 14, 2015.

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6 comments

  1. dfav says:

    Its clear that NPDC can’t operate these ex-shell fields.

    So why are they protesting. .?

    Is it because of the inflated contracts that the NPDC cabals enjoyed or increase in production which they haven’t been able to do for more 3yrs as operators?

  2. Eric Moore says:

    Mr dfav or daft, why have these partners not able to pay their cash calls? And what’s is the guaranty that they have the resources to operate the assets?

  3. Victor says:

    Eric Moore,

    Pls do not deceive yourself with stupid sentiments. I work for one of the partners on these assets and I can tell you that whoever came up with the idea of giving operatorship to NPDC was damn wrong.

    Which partners have not been able to pay cash calls? When was the last time NPDC called for cash on the assets they are supposedly operating? In addition, have u seeing Seplat’s annual report? NPDC is owing hundreds of millions of dollars in cash calls.

    We need to be realistic and do what this right. I am all for a strong and technical visible NPDC but the truth is, NPDC is not there yet!

  4. Purpose says:

    All these comments are sentiments. What do u know is cashcall. Seplat that is usinv npdc money to run operations. How wells as seplat driĺled since 2010 to increase proxuction. Compare that with npdc

  5. dfav says:

    @ Eric Moore & Purpose;

    I will only answer u if you either work for NPDC asset team or any of the partners directly/indirectly.

    but if u don’t fall with these categories; am sure that you maynt be well informed.

    NPDC collected these assets with a shut-in capacity in 2006 of over 150,000bopd; yet with all the cash pumped into these assets; they still produced less than half their capacity.

    Have u been to any of these assets? I work with them via a contractor (name withheld); and I will tell you that NPDC is grossly inefficient and understaffed.

    If these assets are producing to their full potential; no partner will be clamoring for operatorship because it will reduce their cost of hiring more staffs since NPDC can do the job.

    The partners have more technical experienced staffs than NPDC; I know of FHN; Elcrest & Neconde.

    NPDC technical team managing the assets are less than 20 persons ok..; yet each asset need at least 50-100 full time staffs for optimal operations.

    if they NPDC are that good; why haven’t they increased the production of Oredo field; Oziegbe field that they have 100% operationship? and why have they increase these ex-SPDC assets production for than 3yrs now?

    Please let the people that have borrowed money to buy the assets & operate it; cant you see SEPLAT. There wouldn’t have been a seplat today with out operatorship.

    we have too many unformed or wrongly informed Nigerians today

  6. Ogbologbo says:

    The chicken has come home to roost. These NPDC workers are the most irresponsible set of workers in the oil industry. They cannot perform yet they insist on operatorship. The granting of which was a grave mistake in the first place. Diezani was never a technical person and lacked the capacity to make the right call on operatorship. The structure, organization, capacity and capability of NPDC to operate these assets was not put in place before operatorship wa granted. The staff themselves know this.
    The unions were not party to the decision to transfer the Government interest in the JV to NPDC. government as a shareholder has a right to do what it likes with its interest in a JV. It is not the unions business and they cannot make the call. Shell sold its shares in these JVs and retrenched staff, that is how companies operate. The unions are stepping beyond their boundaries. I do hope the new Government will clip their wings. NNPC as a whole needs a surgical operation.

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