The Management of Heritage Energy Operational Services Limited (HEOSL), the operator of OML 30, on Friday appealed to its host communities for their patience following delays in the conclusion of some commitments agreed with the communities earlier in the year.
The oil firm in a statement made available to newsmen in Warri said, “This appeal is necessary in the wake of the shutdown of production activities across OML 30 facilities as directed by the leadership of its host communities.
“HEOSL appreciates its host communities for their partnership in making significant progress with meeting many of the agreed commitments, including the inauguration of the GMoU Contracts Committee, the release of additional GMoU funds, the progression of the ongoing contracting process and payment of a large number of contractor.
“These achievements notwithstanding, the company acknowledges that certain commitments remain a work in progress. The economic downturn and the resultant drop in oil prices is the major reason for the Company’s current cash flow challenges. Despite this, the company has been working steadfastly to source alternative inflows and has been successful in securing certain funds, which have been used to settle some of the outstanding commitments. The Company remains confident that it will be able to meet its commitments and continue to contribute to the local and national economy.
“The company would also like to use this appeal to remind the OML 30 host community stakeholders that HEOSL’s financial position is dependent on its ability to maintain production. This means that shutdowns are not in the best interests of the company, the communities, the JV Partners or the Federal Government of Nigeria,” the firm emphasized.
OML 30 contributes significantly to the Nigerian economy which makes the shutdown of its facilities a huge economic implication in terms of revenue loss to the tune of several millions of dollars daily.