Eastline Energy Resources Limited, an oil and gas servicing firm based in Port Harcourt, has filed a class action lawsuit against Conoil Producing Limited over a $774,789 debt.
Nairametrics reported that the Nigerian National Petroleum Company Limited and members of the Conoil staff both received a letter dated June 14 that announced the intention to file a class action lawsuit against Conoil in the United States. The letter was also sent to the President’s chief of staff, Femi Gbajabiamila.
Conoil Producing Limited was accused of being one of Nigeria’s most infamous corrupt players in the oil and gas industry in a letter written by the company’s Chief Executive Officer, Obioma Chimechefulem.
Conoil Producing Limited, according to the letter, has refused to pay Eastline Energy Resources for services done on certain of its oil and gas properties.
It read: “Eastline Energy Resources Limited, an industry leader in a wide range of oil and gas services, worked for Conoil at the OML 59 and OML 150 oil fields. The projects were finished satisfactorily, and according to the contract, Eastline was to be paid a balance of $774,789 for services delivered.
“Conoil has taken every measure possible to avoid paying us. Conoil Producing Limited is one of the most well-known “bad actors” in the oil and gas business. Fear, condemnation, and damnation are elicited simply by mentioning the company’s name.”
According to the letter, Conoil is synonymous with the word, “debt” and the company currently owes Total E&P Nigeria – $70 million, Halliburton – $30 million, Depthwize – $15 million, and Shelf Drilling -$20 million, to name a few-these do not take into account the billions of Naira owed to local contractors.
Eastline Energy Resources noted that they are not the first company to take Conoil to court overseas-oil trading firm, Vitol, did so in 2009 in a United Kingdom court and won its case handily and so they are hopeful that this lawsuit will also get them justice they deserve.
Eastline Energy Resources further accused Conoil’s leadership of being inattentive, shady, ill-equipped, and unprepared for challenges.
In conclusion, the letter stated that “Conoil should be at the very top of this housekeeping and house-clearing exercise as part of the presidency’s promise to clean up the oil and gas sector. A single rotten fruit can taint an entire crop since no organization is above the law or immune from repercussions for its wrongful actions.”
