Conoil’s Niger Delta Oil Blocks Rot Away as Billion-Dollar Losses Pile Up
Nigerian billionaire Mike Adenuga, Africa’s fifth-richest man, is under intense public scrutiny following fresh revelations that his oil company, Conoil, has allegedly failed to deliver billions of dollars in revenue to the Nigerian government over the past 16 years.
According to leaked documents, photographs, and insider reports from the oil sector, Conoil has not produced a single barrel of oil from four Niger Delta sites it was awarded to operate. A confidential Nigerian National Petroleum Company (NNPC) report titled Status of Non-Producing Conoil Assets bluntly states that these sites have been lying idle for years.
One of the most striking cases is OML 153, awarded to Conoil in 2007. At the time, NNPC projected it could produce up to 30,000 barrels per day within 12 to 18 months—worth around $2.1 million daily. Yet, nearly two decades later, OML 153 remains dormant, costing the country enormous sums in potential revenue.
A Rig Left to Rot Abroad
The documents reveal that a key rig meant for OML 153 was shipped to Louisiana, USA, for upgrades years ago. Instead of returning to Nigerian waters, it now sits derelict at a shipyard on the Texas-Louisiana border, rusting under harsh weather.
Experts estimate that Nigeria has lost about $12.2 billion in potential revenue over the last 16 years due to OML 153 alone, based on an average oil price of $70 per barrel. Shockingly, the NNPC report also notes that the federal government may not even be aware of the rig’s true condition, despite refurbishment costs running into tens of millions of dollars.
Safety Hazards and Environmental Risks
The leaks go beyond lost production—they point to serious safety and environmental failures across Conoil-managed platforms. Inspection records describe expired life jackets, faulty fire extinguishers, and lifeboats that haven’t been serviced in years.
In some cases, workers were forced to sleep on top of fridges because their cabins were leaking and uninhabitable. A damning audit of OML 103 stated that every piece of safety equipment on board had either expired or stopped working, while untreated sewage was reportedly discharged directly into the sea.
One insider summed it up starkly: “The platform is in a state of severe neglect after 35 years at sea. NNPC has complained about the risks to human life, but Adenuga’s company just ignores them.”
Contractors Cry Out Over Debts
Financial troubles are also mounting. Nigerian contractor Kegoz Oil Systems says Conoil owes it ₦3.75 billion for work done on OML 150. In the U.S., law firm Wells Peyton Parnell Baldo & Lighty is pursuing Conoil’s subsidiary Better Gold Enterprises over $141,000 in unpaid rent tied to the abandoned Louisiana rig.
Another group of contractors has filed a class-action lawsuit, alleging Conoil owes them nearly $775,000 across multiple projects. Even within Nigeria, technical reports continue to flag deteriorating equipment—faulty cranes, corroded tanks, and missing safety gear.
Adenuga’s Golden Empire Under Pressure
At 72, Mike Adenuga—nicknamed “Golden Mike” for his love of gold-plated offices and flamboyant lifestyle—faces one of the toughest battles of his career. Once celebrated as a symbol of Nigerian business success, the latest revelations suggest cracks in his empire.
Insiders say he is trying to “craft a narrative” that OML 153 will soon come back online. But industry experts warn that even if a new rig is sourced today, it could take months before production begins—nowhere near enough to recover the billions already lost.
For many observers, the corroded rigs are more than just abandoned equipment; they symbolize the slow decay of a business empire once seen as unshakable.
Effort has reached out to Conoil for comments on these revelations, but at the time of publication, no response had been received.
