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EXCLUSIVE: Fresh Law Suits Loom For Nigerian Billionaire, Michael Adenuga After Refusing To Pay Multi-million Dollar Companies’ Debts

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Conpurex, a wholly-owned subsidiary of Mike Adenuga’s oil and fuel conglomerate ConOil is being pursued by collectors for a mixed debt of about $7 million by a overseas firm and an area firm.
 
Earlier this 12 months, Adenuga, chairman of Globacom, a telecommunications firm in Nigeria, ranked fifth on the listing of rich Africans with a internet price of $6.3 billion.



With this private fortune, Adenuga Jr could be very unlikely to be hurting for money. Nonetheless, for enterprise companions to get the 68-year-old billionaire to repay the corporate’s money owed is outwardly proving to be an embarrassing problem, with Nigeria’s second richest man as soon as once more being haunted over unpaid money owed.
 
In 2016, ConOil was pursued by collectors for a debt of over $140.5 million owed to 2 overseas corporations and one native firm.
 
Recent litigation is now looming over tens of millions of {dollars} owed by Conpurex.
 
Depthwize, a drilling contractor based mostly in Ibadan, the capital of Oyo State, says it’s owed greater than US$6,248,441.27 {dollars} ($6.2 million) by Conpurex, making it unable to pay its US companion Megadrill.
 
With the cost now greater than twelve months overdue, Megadrill, has now employed New Orleans legislation agency, Jones Walker, to get well the funds from ConOil, SaharaReporters has learnt.
 
A letter by Lawyer John Duveilh to Erekata Julius, Chief Monetary Officer at ConOil: “It’s not the will of Megadrill or Depthwize to supply a drawn-out authorized battle, however reasonably merely receives a commission for work already carried out and contractually owed. Nonetheless, if Conpurex refuses to satisfy their contractual obligations, and the quantity isn’t paid instantly, Megadrill might be compelled to take acceptable actions.”
 
The letter dated August 18, 2021, additional said that the corporate will notify the Nigerian oil trade regulator, different worldwide companies resembling ExxonMobil, Chevron, Shell and Glencore, seeking to do enterprise with Conpurex that the latter is topic to ongoing authorized motion.
 
It additionally talked about that it’s going to search court docket orders to grab belongings together with company and personal financial institution accounts.
It stated lawsuits might be filed in England and Nigeria, including that it’s going to notify different worldwide companies – amongst them ExxonMobil, Chevron, Shell, Vitol, Complete Buying and selling and Glencore – seeking to do enterprise in that jurisdiction that it’s topic to ongoing authorized motion
It additionally stated it will search “further USD (US {dollars}) funds for violation of the contractual phrases for the wrongful cost of Naira when USD ought to have been paid” and “search all authorized foundation from securing belongings by means of acceptable financial institution accounts”.
 
The Lagos headquarters of Depthwize additionally wrote to Conpurex to warn that the non-payment of its invoices is considerably hampering its operations, leaving it unable to resume the insurance coverage cowl on its belongings.
 
Uche Dimiri, Depthwize’s CEO, within the letter dated August 16 stated: “As of at the moment, we have now a complete of US$6,248,441.27 {dollars} due and unpaid ageing over twelve months.
 
“Importantly, and sadly so, as an organisation, we have now been unable to resume the insurance coverage cowl on our working belongings due to a liquidity squeeze attributable in giant elements to your non-payment of our invoices. We can’t overemphasize the destructive affect this case is having on our ongoing operations.”
 
And in an additional embarrassment to Adenuga, Megadrill and Depthwize will not be alone in imploring ConOil to honour contracts.
 
Zukus Industries Restricted, an oil and fuel providers contractor, has written to ConOil thrice this 12 months over excellent invoices due from 2017 and 2018 totalling N317,750,268.09 (about $700, 000).
 
Chinye Uzor, Zukus’s Managing Director, wrote to Sina Olinade, ConOil’s Industrial Supervisor, in March, August, and September 2021.

Its first letter of March 3, 2021, signed by Uzor and addressed to the Managing Director, Con Oil Producing Restricted, is titled: ‘Demand For Cost of Excellent Invoices.’

It learn, “Our letter dated thirteenth November with reference no: ZIL/WAR/093; fifth August 2019 with reference no: ZIL/WAR/093/19; mail of thirtieth Might 2019; mail of fifteenth October 2019, letter dated fifth February 2020 with reference no: ZIL/WAR/1033/20 and several other telephone calls refers (Copies of letters connected as Appendices II-VI).

“We write to request for cost of our excellent invoices lengthy overdue for cost from 13/12/2017 to 08/12/2018, totalling Three Hundred and Seventeen Million Seven Hundred and Fifty Thousand, Two Hundred and Sixty-Eight Naira 9 Kobo (N317,750,268.09) solely.

“When wanted with out failure, we have now supplied to your organization; neighborhood settlements had been promptly dealt with for fast execution of jobs. The delay in immediate cost of those payments has had an amazing impact on our operations. We’re going by means of intense intervals owing to our lack of ability to satisfy up with collectors’ indebtedness and financial institution mortgage reimbursement.”

Zukus Industries Restricted’s second letter to ConOil in 2021 additionally careworn the necessity for the latter to pay its debt, including that the “excellent covers the work carried out by Zukus Industries Restricted for ConOil Producing Restricted between 2017 and 2018, way back to 4 years in the past”.

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It stated the job was dealt with professionally, including that it’s “now at a loss as to why funds of those monies owed to us are being withheld”.

Within the third and closing demand, he informed Mr Olinade: “This might be our third and closing demand to ConOil Producing Restricted for the total cost of our complete excellent of Three Hundred and Seventeen Million Seven Hundred and Fifty Thousand, Two Hundred and Sixty-Eight Naira 9 Kobo (N317, 650, 268.09).”
 
He added that within the occasion of non-payment: “Our makes an attempt to get well the funds might be broad in scope, which is why we should insist that our warning on this letter is taken with the utmost seriousness.

Litigation Letters Aden Uga by Sahara Reporters on Scribd

We anticipate cost to be made promptly.”
 
The state of affairs has grow to be such a priority to Complete that its CEO Mike Sangster wrote to Adenuga personally on March 22, 2021, to request a gathering. In it he spoke of discussing “how we will take concrete steps to maneuver our partnership in direction of success.”
 
“I’d be pleased to satisfy with you at your non-public workplace in individual or in case you would favor, a digital assembly might be organized,” Sangster had added.

 

The looming litigation comes amid a brewing disaster in Adenuga’s enterprise estates.
 
In September, Nigeria’s tax authority FIRs sealed off the workplaces of ConOil on the Mid Adenuga Towers constructing over non-payment of taxes.
 
The federal government’s Division of Petroleum Sources (DPR) has additionally reportedly positioned a garnishee order on ConOil’s financial institution accounts to the tune of US$30 million {dollars}.
 
Adenuga’s and ConOil’s poor debt document can be affecting their makes an attempt to broaden their operations.
 
Earlier this 12 months, Chevron bought ConOil its 40 per cent stake in Oil Mining Licences (OMLs) 86 and 88, situated within the Niger Delta basin. The corporate reportedly paid a US $250 million deposit for the belongings.
 
Nonetheless, the state-owned Nigerian Nationwide Petroleum Company (NNPC), which owns the remaining 60 per cent stake in each blocks exercised its veto over the sale.
 
Adenuga’s relationship with the oil regulators and businesses was stated to have been blighted by ConOil’s poor efficiency as an operator within the oil and fuel trade.
 
Some sources within the trade stated that is accountable for NNPC’s rejection of ConOil’s US $1.3 billion {dollars} provide for Shell’s Oil Mining Licence (OML) within the western Niger Delta in 2011, preferring a considerably decrease US $850 million provide from Heritage Oil.
 












Little has occurred since then to revive the arrogance of the regulators or worldwide companions in ConOil and Adenuga. 
 
Two of its belongings, OML 150 and OML 153 in Delta State, which it acquired in 2007, have but to supply a barrel of oil after 14 years possession.
 
The corporate’s Oil Prospecting 257 Asset (OPL), situated 150km offshore in Nigeria, which it co-owns with Complete, has failed to satisfy drilling necessities resulting in the expiration of its 20-year licence.
 
Additionally, ConOil’s OML 136 subject off the Nigerian Price, which Complete has a 40 per cent stake in regardless of being in one of many largest fuel fields in Nigeria, with confirmed reserves of 11 trillion cubic toes of fuel, had but to begin manufacturing after 25 years of the asset being acquired.

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