Conoil is poster child for corporate fraud, Eastline Energy alleges

Conoil Producing Limited has been accused by Eastline Energy Resources Limited of being a corporate fraud and allegedly having a felon as a director in the company.

Eastline Energy, a Port-Harcourt-based oil and gas servicing firm, said this amid a faceoff between both companies over a $774,789 debt Conoil is allegedly owing.

Several complaints were made against Conoil in a letter dated June 14, signed by Eastline Energy Chief Executive Officer, Obioma Chimechefulem, and sent to the President’s Chief of Staff, Femi Gbajabiamila.

In the letter, which was addressed to the Nigerian National Petroleum Company (NNPC) Limited and Conoil workers, Conoil was described as a bad actor and serial debtor in the oil industry.

Aside from the $774,789 debt, Conoil was also accused of owing Total E&P Nigeria $70 million, Halliburton $30 million, Depthwize $15 million and Shelf Drilling $20 million.

This is excluding local contractors Conoil is also said to be owing. As a result, both foreign and local contractors, including Eastline Energy, have filed a class action lawsuit against the company in the United States.

Eastline Energy said the decision to take the case outside to the US was due to Conoil’s attempt to constantly frustrate court orders in Nigeria.

Commenting about how allegedly Conoil goes around owing contractors, Eastline Energy said once Conoil retains the service of a firm, they start avoiding payments.

“We at Eastline Energy Resources Limited, an industry leader in a variety of oil and gas services, worked for Conoil at its OML 59 & OML 150 oil fields. The jobs were completed satisfactorily and as per the contract, a balance of $774,789 was to be paid to Eastline for services rendered.

“Conoil has used every measure to avoid paying us. One of the most notorious “bad actors” in the oil & gas industry is Conoil Producing Limited. The mere mention of the company’s name elicits fear, condemnation, and damnation.

“For decades the Board and management of Conoil have deliberately and systematically destroyed the fortunes and livelihoods of many contractors that work for them. Conoil is synonymous with the word, “debt”.

“The company goes to extreme lengths, on purpose, to ensure that once it has retained a service from a contractor for a job, it ceases to pay any monies owed. We have it on good authority that it 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,” part of the letter reads.

Eastline Energy further revealed that one of Conoil’s advisors for years, Jeffrey Tesler, a former lawyer, is a convicted felon, but yet a shadow director at Conoil.

It was disclosed that Tesler served 21 months in a US prison (Fort Dix, New Jersey) for his involvement in a $150 million bribery scandal.

Eastline Energy suggested that: “As part of the presidency’s promise to clean up the oil and gas sector, Conoil should be at the very top of this housekeeping and house-clearing exercise. One rotten fruit can contaminate an entire harvest.

“No organization is above the law or free of punitive measures for its unjust actions. This letter will be part of the class action lawsuit filed against Conoil at the United States District Court in New York.”

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now