Aiteo Fully Committed To Contractual Obligations To NNPC, Says Firm

SAN FRANCISCO, May 18, (THEWILL) – Indigenous oil company, Aiteo, Sunday said it has not defaulted in its contractual obligations to the Nigerian National Petroleum Corporation (NNPC) with regards to Oil Mining Lease (OML) 29 and the Offshore Processing Agreement (OPA), adding that a section of the media was being used to taint its reputation.

The company said it started participating in the Offshore Processing Agreement (OPA) with the NNPC three months ago after it was selected based on its capacity and ability to perform.

“The terms of this contract are clear and Aiteo has not breached any obligation in the OPA. Indeed just last Friday, Aiteo had a reconciliation meeting with the NNPC and it was acknowledged that Aiteo is up to date in its contractual performance,” the company said.

The Offshore Processing Agreement (OPA) is a process by which the Nigerian National Petroleum Corporation (NNPC) provides crude oil to another party to refine on behalf of the corporation and return the refined products to the NNPC based on the yield slate of the party's refinery and NNPC pays for the refining and other incidental costs.

Aiteo said the OPA is a more cost-effective option to the previous regime of crude swaps that the country relied on for petroleum product suppliers.

“Aiteo is a legitimate business that has recently grown its workforce from 400 to 2000 to enable it effectively manage OML 29. Aiteo expects to substantially recruit above this number very soon,” the company said, refuting insinuations that it is fronting for any individual or group.

“To finance our asset acquisition and operations, Aiteo has raised facilities from a consortium of banks, including Citibank, First Bank, Zenith and Union Bank. These creditors have duly subjected Aiteo to corporate governance and due diligence tests. Detail Commercial Solicitors of England conducted the due diligence on Aiteo, while the legal agreements were prepared by the prestigious firm of Aluko and Oyebode. The allegations of fronting for anyone are baseless.

“Any fair-minded reader will note that the Energy Compass report, which was reproduced in the media, is slanted to taint Aiteo with odium in a moment of transition. Aiteo will be taking necessary legal action to contest this unnecessary campaign of calumny against a legitimate business.”

Aiteo Eastern Exploration and Production (E&P) Company Limited, a subsidiary of Aiteo Group acquired (OML) 29 and the Nembe Creek Trunk Line (NCTL) and related facilities in the Eastern Niger Delta from the Shell Petroleum Development Company of Nigeria Limited (SPDC) at $1.7 billion.