{"id":13440,"date":"2023-03-13T22:12:36","date_gmt":"2023-03-13T22:12:36","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=13440"},"modified":"2023-03-13T22:12:36","modified_gmt":"2023-03-13T22:12:36","slug":"nigeria-eroton-emphasizes-it-remains-the-operator-of-oml-18","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-eroton-emphasizes-it-remains-the-operator-of-oml-18\/","title":{"rendered":"NIGERIA: Eroton Emphasizes it Remains the operator of OML 18"},"content":{"rendered":"\n

In its press release, Eroton has emphasised that it remains the operator of OML 18 in line with the provisions of the Joint Operating Agreement governing OML 18 and has made the following points:<\/p>\n\n\n\n

    \n
  1. The purported attempt by the non-operators of OML-18; NNPC Limited (NNPC) <\/strong><\/em>and Sahara Field Production Limited (Sahara)<\/strong><\/em> (now known as OML 18 Energy Resource Limited<\/em><\/strong>) to appoint NNPC Eighteen Operating Limited as operator of OML 18<\/strong><\/em> is a breach of the JOA as any dispute whatsoever between the parties must be addressed by the dispute resolution provisions of the JOA. There can be no removal of an operator without following these procedures and the process is designed in such a way that notice requirements cannot be waived, and the removal of an operatorship can therefore not be carried out, without following the process provided in the JOA.<\/li>\n\n\n\n
  2. Eroton has issued a notice of arbitration to NNPC and Sahara in accordance with the terms contained in the JOA to defend its legal rights. Furthermore, Eroton has received a legal opinion that it continues to remain as operator pending such resolution and that this will be upheld by the courts of Nigeria. Eroton further notes that the action taken by NNPC and Sahara sets a damaging precedent in the oil & gas industry in Nigeria because due process has not been followed.<\/li>\n\n\n\n
  3. Eroton took over operatorship of OML 18 in 2015 with a production of 6,000 bbls\/d and increased production to over 50,000 bbls\/d of dry crude (75,000 bbls\/d of gross liquids) in less than 24 months.  Eroton was also recognized by NNPC as being one of the two operators with the lowest technical cost per barrel in the industry over that time period. This performance continued until the wider industry became severely impacted firstly by COVID-19, and then by the unprecedented level of crude theft and sabotage plaguing the Niger Delta area since 2020.<\/li>\n\n\n\n
  4. Since Q4, 2021, the Government of Nigeria has received virtually zero crude oil from any company utilising the Nembe Creek Trunk Line (NCTL), a pipeline that is partially owned by NNPC, owing to the force majeure declared by the NCTL operator and the widespread vandalism and crude oil theft recorded in the region. These criminal activities in the Niger Delta are well known and continue to adversely affect the entire region. For example, Eroton’s crude oil receipts dropped steadily in 2021, culminating in zero receipt in November 2021 at Bonny Terminal. This was despite efficient wellhead production data showing produced volumes of over 500,000 barrels of oil for the same month. Consequently, and in agreement with its partners in OML 18, Eroton shut in the wells.<\/li>\n\n\n\n
  5. Eroton subsequently undertook an alternative means of evacuating its crude oil from OML 18 using barges, a project funded entirely by Eroton and with no financial support from its partners.<\/li>\n\n\n\n
  6. Eroton further states that the allegations of improper actions by it are baseless and unfounded and categorically denies any fraudulent acts as stated in the in certain press reports.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    In its press release, Eroton has emphasised that it remains the operator of OML 18 in line with the provisions of the Joint Operating Agreement governing OML 18 and has … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":13441,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,11,7444],"tags":[8035,8033,11067,1749,8117,11088,8030,11108],"class_list":["post-13440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-top-news","category-west-africa","tag-eroton","tag-nembe-creek-trunk-line","tag-niger-delta-2","tag-nigeria","tag-nnpc","tag-nnpc-eighteen-operating-limited","tag-oml-18","tag-sahara-field-production-limited","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/OML-18-1.jpg?fit=750%2C598&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-3uM","jetpack-related-posts":[{"id":13398,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-oml-18-jv-partners-appoints-nnpc-eighteen-operating-limited-as-operator\/","url_meta":{"origin":13440,"position":0},"title":"NIGERIA: OML 18 JV Partners Appoints NNPC Eighteen Operating Limited as Operator","author":"","date":"March 7, 2023","format":false,"excerpt":"The non operating joint venture partners of OML 18 have appointed NNPC Eighteen Operating limited as operator replacing Eroton Exploration and Production Limited. According to a statement from the NNPC the move was to curtail further degradation of the asset and revamp production of oil and gas. The change has\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/OML-18.jpg?fit=750%2C598&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/OML-18.jpg?fit=750%2C598&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/OML-18.jpg?fit=750%2C598&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/OML-18.jpg?fit=750%2C598&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":13354,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-eroton-remains-the-operator-of-oml-18-san-leon\/","url_meta":{"origin":13440,"position":1},"title":"NIGERIA: Eroton Remains the Operator of OML 18 – San Leon","author":"","date":"February 28, 2023","format":false,"excerpt":"San Leon has denied recent speculation in the Nigerian press about the operation of the Oil Mining License (OML) 18.\u00a0 The Company has been made aware of an article published in Nigeria on 25 February 2023 that alleges that the\u00a0Nigerian National Petroleum Company Limited has taken over the operatorship of\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/02\/OML-18.jpg?fit=750%2C598&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/02\/OML-18.jpg?fit=750%2C598&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/02\/OML-18.jpg?fit=750%2C598&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/02\/OML-18.jpg?fit=750%2C598&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":13545,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-san-leon-eenrgy-provides-update-on-proposed-transactions-refinancing-update-eli-operational-update\/","url_meta":{"origin":13440,"position":2},"title":"NIGERIA: San Leon Energy Provides Update on Proposed Transactions, Refinancing Update & ELI Operational Update","author":"","date":"April 4, 2023","format":false,"excerpt":"San Leon announces a further update in relation to: i) the proposed transactions with Midwestern Oil & Gas Company Limited (Midwestern) and the Company's further conditional investments in ELI; ii) its current refinancing discussions; and iii) an Energy Link Infrastructure (Malta) Limited (ELI) operational update. Update on the Proposed Transactions\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/04\/OML-18.jpg?fit=750%2C598&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/04\/OML-18.jpg?fit=750%2C598&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/04\/OML-18.jpg?fit=750%2C598&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/04\/OML-18.jpg?fit=750%2C598&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":13509,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-san-leon-provides-update-on-refinancing-proposed-transactions\/","url_meta":{"origin":13440,"position":3},"title":"NIGERIA: San Leon Provides Update on Refinancing & Proposed Transactions","author":"","date":"March 24, 2023","format":false,"excerpt":"Update on the refinancing discussions As announced by the San Leon on 20 December 2022, the Company was expecting to conclude a refinancing with a preferred alternative funding partner early in 2023. Discussions have advanced since then, albeit much slower than anticipated, both with this partner and also with a\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/OML-18-2.jpg?fit=750%2C598&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/OML-18-2.jpg?fit=750%2C598&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/OML-18-2.jpg?fit=750%2C598&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/OML-18-2.jpg?fit=750%2C598&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":9206,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-nnpc-seepco-sign-oml-143-monetization-agreement\/","url_meta":{"origin":13440,"position":4},"title":"NIGERIA: NNPC, SEEPCO Sign OML 143 Monetization Agreement","author":"","date":"September 25, 2020","format":false,"excerpt":"The Nigerian National Petroleum Corporation (NNPC) and Sterling Global have signed off on agreements for monetization of its fully operated Oil Mining Lease (OML) 143. According to NNPC this latest development will help increase NNPC's footprints in the downstream gas market and a potential revenue of $500-600m to the country.\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/NNPC-SEEPCO.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/NNPC-SEEPCO.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/NNPC-SEEPCO.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/NNPC-SEEPCO.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/NNPC-SEEPCO.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":14292,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-nnpc-partner-unlock-12000bpd-production-from-awoba-unit-field\/","url_meta":{"origin":13440,"position":5},"title":"NIGERIA: NNPC,\u00a0Partner\u00a0Unlock\u00a012,000bpd\u00a0Production\u00a0From\u00a0Awoba\u00a0Unit\u00a0Field","author":"","date":"April 29, 2024","format":false,"excerpt":"Keen on optimising production from the nation\u2019s hydrocarbon assets to boost revenues and meet the nation\u2019s OPEC production quota, the Nigerian National Petroleum Company Limited (NNPC Ltd) and its Joint Venture partner in the Awoba Unit Field, Newcross Exploration and Production Ltd, have restarted production from the Awoba field which\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/04\/Nigeria-OML-24.jpg?fit=500%2C300&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/13440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=13440"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/13440\/revisions"}],"predecessor-version":[{"id":13442,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/13440\/revisions\/13442"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/13441"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=13440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=13440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=13440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}