Nembe Exploration and Production Company Limited (“Nembe”), formerly known as Aiteo Eastern Exploration and Production Company Limited, has reacted to media reports concerning the Economic and Financial Crimes Commission's (EFCC) recovery of funds from oil companies over outstanding obligations relating to the Nembe Creek Trunkline.
The publications, which refer to Aiteo alongside Newcross Exploration and Production Limited, have created a misleading impression of Nembe's role in the recoveries, particularly regarding outstanding pipeline transportation fees.
In a statement issued on Friday, the management reminded the public that the company's name was changed to Nembe Exploration and Production Company Limited in the second quarter of 2025.
It said Nembe, as operator of the Nembe Creek Trunkline (NCTL) on behalf of its Joint Venture (JV) with the Nigerian National Petroleum Company Limited (NNPCL), provided crude oil transportation services to third-party operators, including Newcross. Over time, outstanding transportation fees arose from the use of the pipeline, which Nembe was responsible for pursuing on behalf of the JV.
The matter dates back several years, to a period when the Nigerian oil and gas industry was grappling with widespread crude oil theft, pipeline vandalism, insecurity and other operational disruptions, particularly since the COVID-19 period. The problems had affected crude transportation through the NCTL and made the reconciliation of volumes delivered by individual operators increasingly difficult.
Before the EFCC's involvement, Nembe made repeated efforts to recover the outstanding payments through direct demands, correspondence and engagements with the pipeline users, but did not secure full settlement of the indebtedness.
The EFCC's subsequent intervention brought its statutory investigative and recovery powers to bear on the outstanding obligations, facilitating the recovery of funds that Nembe had already sought to recover on behalf of the JV.
"The EFCC's intervention in respect of these transportation fees was therefore aimed at recovering money owed to the JV, not money from Nembe," the statement reads. "Nembe was the operator responsible for pursuing the outstanding payments on behalf of the JV, not the defaulting party in the underlying transactions."
The management noted that the recovery of these fees should consequently be understood as the settlement of outstanding payment obligations for services rendered, rather than evidence of wrongdoing or financial misconduct by the company.
Changes in EFCC leadership over the years, it added, might have contributed to a misunderstanding of the circumstances surrounding the matter and the respective roles of the parties involved. Nembe maintains that it is not indebted to the JV in respect of the pipeline transportation fees in question.
The separate issue concerning stamp duty arising from the acquisition of OML 29 and the NCTL remains the subject of an ongoing reconciliation process with the relevant statutory authorities, as Nembe continues to engage in that process, during which the applicable obligations and amounts are being examined.
"This matter is entirely distinct from the recovery of outstanding pipeline transportation fees and should be treated accordingly," the clarification urged. "Nembe welcomes the recovery of outstanding transportation revenues owed to the joint venture."
The management trusts that subsequent reporting will reflect the true nature of its involvement: as the operator that provided the services, pursued payment and benefited, together with its joint venture partner, from the recovery of amounts properly due.
Pipeline transportation fees were owed to JV, not recovered from Nembe - Management clarifies