Business

Nigerian firm petitions Reps for N14 billion NAOC debt

Indigenous oil services firm, DE COON Services Limited, has written to the House of Representatives to investigate an alleged contract breach of about N14billion, comprising $30 million, and another N70 million owed it by the Nigerian Agip Oil Company (NAOC).

The company claimed that while it handled a contract for the oil major, NAOC, despite receiving over 70 per cent of the monies through several cash-calls performed with National Petroleum Investment Management Services (NAPIMS), NOAC failed to pay the received monies to De Coon Services.

The petition to the lawmakers was specifically addressed to the speaker and dated June 30th, 2020.
While NAOC acknowledged receipt of an email from The Guardian on the development, promising to get back, the oil firm was yet to respond at the time of filing this report.

However, Managing Director of the engineering company, Nelson Onubogu, in the petition, said the amounts represent only the debt, as NAOC has refused to issue the required Purchase Orders that would allow it submit invoices for payment despite the services having been already provided to NAOC for oil and gas production.

“Additional $7million is also owed the company for invoices unpaid within the system,” he stated while alleging that the oil firm was trying to frustrate payment, and attempting to transfer the contract to an Italian firm.

Onubogu called on the lawmakers to carry out a thorough investigation into the allegations raised by De COON.

He also sought payment for all the outstanding bills due, plus compensation for late payment and damages caused to his company’s operations by intentional sabotage.

“Nigeria local content law has made it possible for local Nigerian companies to grow and develop in the oil and gas industries, so this effort must not be allowed to be strangulated,” he submitted, adding that if actions are not taken to correct these acts, this huge debt would affect not just De Coon, but other local contractors as well.

Onubogu lamented that such a situation would not be attempted by a Nigerian company operating in Europe or anywhere in the world, insisting that lawmakers must find ways to address such a situation in the sector.

Source: guardian.ng