Neconde was incorporated on November 26, 2010 as an independent oil & gas company serving as a special purpose vehicle for the acquisition and development of petroleum assets. The company’s core operations focus on the exploration and development of oil and gas assets for the purpose of production and sale of crude oil and gas stock to generate revenue.
In January 2011, the Company participated, and emerged successful, in the bid for the acquisition of 45% stake in OML 42 held by Shell Petroleum Development Company Limited (“SPDC”), Total Exploration and Production Nigeria Limited, and Nigeria Agip Oil Company Limited (the “SPDC JV”) with a bid sum of USD585 million to the SPDC JV who constituted the sellers. Following the completion of the acquisition, the new ownership structure of OML 42 is in the ratio of 45% (Neconde): 55% (NPDC). NPDC, Nigerian Petroleum Development Company, a subsidiary of NNPC, Nigerian National Petroleum Corporation, operated the asset between 2011 and April 2015. In May 2015, Neconde was awarded the operator of the asset on behalf of the Neconde/NPDC Joint Venture.
Neconde’s status as an indigenous company with an excellent management team offers a viable option through which the currently under-developed reserves of the Niger Delta could be brought into production with potential economic and social benefits for the region and country at large. There is also an opportunity to utilize the associated gas produced for electricity supply to the region, resulting in significant socioeconomic benefits.
Following the conclusion of the acquisition of OML 42, Neconde entered into a Joint Venture partnership with NPDC on the modalities for the development and revamping of the acquired block.