Eroton sues Sahara, NNPC over control of oilfield, OML 18

Eroton Exploration and Production Company Limited has sued Sahara and the Nigerian National Petroleum Company (NNPC) Limited.

Eroton filed a lawsuit against Sahara and NNPC over the operation of an oilfield, Oil Mining License (OML) 18, which was previously co-operated by the three companies.

Last week, NNPC revealed that Eroton had been ejected from the oilfield, with NNPC Eighteen Operating Limited appointed to replace Eroton.

NNPC had accused Eroton of abandoning the oilfield which has not been producing crude oil for two years. The government-owned oil giant said it took over the asset to improve it and resume production.

However, on Wednesday, the Managing Director of Eroton, Emeka Onyeka, said the NNPC and Sahara have been taking actions that are illegal or contrary to the contract of the Joint Operating Agreement (JOA).

Onyeka said the NNPC took over the asset without going through the procedure stated in the contract, and should NNPC be allowed to ignore contractual agreements, it could send the wrong signal to other firms involved in a Joint Operating Agreement with NNPC.

The businessman said Eroton has filed a suit in the relevant court to ensure due process is followed in the takeover of operatorship and defend Eroton’s legal right.

READ ALSO:NNPC sacks Eroton as operator of oilfield, OML 18

“The process is designed in such a way that notices requirements cannot be waived and the removal of operatorship cannot be carried out without following the process provided in the JOA,” Onyeka said.

He also stated, “In complete breach of the terms of the Joint Operating Agreement governing OML-18, and with total disregard for due process, the non-operators of OML-18; NNPC Limited and Sahara Field Production Limited (Sahara) (now known as OML 18 Energy Resource Limited) appointed a company, NNPC Eighteen Operating Limited as operator of OML-18.”

“Eroton has issued Notice of Arbitration to NNPC and Sahara in accordance with the terms contained in the JOA.

“On the basis of the lack of any grounds for the purported takeover of operatorship in accordance with the terms of the JOA governing the block, lack of due process and flagrant breach of the rule of law,” Onyeka said.

Eroton’s MD said the report that the company has been removed as operator of OML 18 should be disregarded, stating that the status quo remains, and Eroton was the operator and assures that the court will rule in the firm’s favour.

“The company as the operator of OML-18, remains committed to transparency, integrity, and due process, and urged the public and stakeholders to disregard any misinformation as we continue to operate in compliance with all applicable laws and regulations.”

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