Contractor Files Lawsuit Against Mike Adenuga’s Conoil Company Over $775,000 Debt

A contracting firm, Eastline Energy Resources Limited says it has begun the process of filing an exhaustive and comprehensive lawsuit against Conoil, an oil and gas conglomerate owned by Nigerian billionaire, Mike Adenuga over its alleged failure to pay its debt.

 

Obioma Chimechefulem, Managing Director of the firm disclosed this in a statement on Thursday.

 

Obioma described the executives of the Adenuga-owned conglomerate as deriving sadistic pleasure from reneging on payments, and the firm of failing to properly maintain multi-million-dollar platforms, in short becoming a rudderless shadow of its former self.

 

He said he was aware of potential purchase of Chevron’s interest in OML 86/88 managed by Conoil but advised that the international company should do due diligence on Conoil before completion.

 

The businessman said Eastline is owed the sum of $774,789.00 for works carried out on behalf of Conoil and for which payment, even after repeated pleas, has still not been made.

 

The statement read, “We use this letter to formally serve notice to Chevron Nigeria Limited (CNL) that Eastline Energy Resources Limited has begun the process of filing an exhaustive and comprehensive lawsuit, by both our local and international counsel, against Conoil Producing Limited and its affiliated and subsidiaries; Conpurex Limited, Continental Oil & Gas Limited, & Belbop Nigeria Limited.

Over the last few years, Eastline has been a contractor of choice to Conoil. We have industry leading skill sets and competence in the areas of surface well testing, brine filtration, well completion, flow back, and early production services amongst many others.

 

“We have worked dutifully and diligently for Conoil at its OML 59 & OML 150 (PSC) assets. The work we have done for Conoil has been satisfactorily accepted. Unfortunately, the name Conoil is now synonymous in the Nigerian oil & gas industry with an abhorrent refusal to pay contractors, a company perpetually mired in litigation, poor management, business malpractice, an abysmal H E record, and high staff turnover due to maltreatment that borders on indentured servitude. It can be said that Conoil’s debt profile has to be one of the highest in Nigeria for an indigenous oil company.

 

“Eastline is categorically owed the sum of $774,789.00 (Seven Hundred and Seventy-Four Thousand, Seven Hundred and Eighty-Nine US Dollars only) for works carried out on behalf of Conoil & for which payment, even after repeated pleas, has still not been made. We have suffered immeasurably working for Conoil to the point where our equipment was seized by another contractor in order to force Conoil to pay them. The loss we incurred from not having this high-quality equipment has been significant and even with that, we simply want to be paid for what we are rightfully owed.

 

“There are literally hundreds of horror stories of contractors that have gone into liquidation, bankruptcy, and foreclosure because of the debts owed to them by Conoil and its vile penchant for not servicing its liabilities. We are well aware of the long-standing relationship between Conoil & Chevron. Chevron has been the primary lifter of Conoil’s Pennington crude out of OML 59 for decades. We have also been duly informed that conversations between Conoil & Chevron’s deal teams continue on the potential purchase of Chevron’s interest in OML 86/88. We encourage Chevron to do a further due diligence on Conoil before completion.

 

“Has Chevron bothered to look at the state of Conoil’s decaying infrastructure? Its MOPUs at OML 59 & OML 103 are not only an eyesore but are both alarming safety hazards that put the lives of the crews on board at risk at every second- those platforms are one bad day away from an explosive catastrophe. Has Chevron looked at Conoil’s HR record and its high staff turnover? Staff are not employees but truly are indentured servants. Please do not be fooled by Conoil’s deal team, they are completely clueless to the poor operational performance of the company which they represent and its woeful track record in the industry. The members of the deal team are akin to snake oil salesmen with sweet dictions.

 

“As part of our lawsuit against Conoil, we will seek to: Wind-up Conoil, Continental Oil & Gas, Belbop, & Conpurex for their breach of contract with Eastline, noting their refusal to pay debts owed.

 

“Place an injunction on the sale and purchase of Conoil’s crude from OML 59 & 103 until Eastline’s debts as stated above have been fully paid.

 

“Place a restraining order on any offtake agreements or asset purchase/divestment with Conoil, specifically mentioning OML86/88, which will be subject to Liens and Garnishments for the outstanding amounts to the fullest extent possible.

 

“Stop Conoil & its affiliates from any significant financial transactions until the total of the amounts owed to us is paid.

 

“Freeze all accounts of Conoil, its subsidiaries, and affiliates in Nigeria until Eastline is paid as per its repeated demand letters. Please take this letter as a formal warning that any business conducted between Chevron (CNL) and Conoil will be subject to litigation and subrogation until Conoil has paid Eastline for its services.”