Pipeline transportation charges have been owed to JV, not recovered from Nembe – Management clarifies

Nembe Exploration and Production Company Limited (“Nembe”), previously often called Aiteo Eastern Exploration and Production Company Limited, has reacted to media studies regarding the Economic and Financial Crimes Commission’s (EFCC) restoration of funds from oil firms over excellent obligations referring to the Nembe Creek Trunkline.

The publications, which check with Aiteo alongside Newcross Exploration and Production Limited, have created a deceptive impression of Nembe’s function within the recoveries, significantly relating to excellent pipeline transportation charges.

In an announcement issued on Friday, the administration reminded the general public that the corporate’s title was modified to Nembe Exploration and Production Company Limited within the second quarter of 2025.

It mentioned Nembe, as operator of the Nembe Creek Trunkline (NCTL) on behalf of its Joint Venture (JV) with the Nigerian National Petroleum Company Limited (NNPCL), offered crude oil transportation providers to third-party operators, together with Newcross. Over time, excellent transportation charges arose from using the pipeline, which Nembe was chargeable for pursuing on behalf of the JV.

The matter dates again a number of years, to a interval when the Nigerian oil and fuel trade was grappling with widespread crude oil theft, pipeline vandalism, insecurity and different operational disruptions, significantly for the reason that COVID-19 interval. The issues had affected crude transportation by the NCTL and made the reconciliation of volumes delivered by particular person operators more and more tough.

Before the EFCC’s involvement, Nembe made repeated efforts to recuperate the excellent funds by direct calls for, correspondence and engagements with the pipeline customers, however didn’t safe full settlement of the indebtedness.

The EFCC’s subsequent intervention introduced its statutory investigative and restoration powers to bear on the excellent obligations, facilitating the restoration of funds that Nembe had already sought to recuperate on behalf of the JV.

“The EFCC’s intervention in respect of these transportation fees was therefore aimed at recovering money owed to the JV, not money from Nembe,” the assertion reads. “Nembe was the operator responsible for pursuing the outstanding payments on behalf of the JV, not the defaulting party in the underlying transactions.”

The administration famous that the restoration of those charges ought to consequently be understood because the settlement of excellent fee obligations for providers rendered, somewhat than proof of wrongdoing or monetary misconduct by the corporate.

Changes in EFCC management through the years, it added, may need contributed to a misunderstanding of the circumstances surrounding the matter and the respective roles of the events concerned. Nembe maintains that it isn’t indebted to the JV in respect of the pipeline transportation charges in query.

The separate situation regarding stamp responsibility arising from the acquisition of OML 29 and the NCTL stays the topic of an ongoing reconciliation course of with the related statutory authorities, as Nembe continues to interact in that course of, throughout which the relevant obligations and quantities are being examined.

“This matter is entirely distinct from the recovery of outstanding pipeline transportation fees and should be treated accordingly,” the clarification urged. “Nembe welcomes the recovery of outstanding transportation revenues owed to the joint venture.”

The administration trusts that subsequent reporting will mirror the true nature of its involvement: because the operator that offered the providers, pursued fee and benefited, along with its three way partnership companion, from the restoration of quantities correctly due.