Conoil investors lost 14.9 percent of their investments in the oil giants after a report emerged on November 6 that the company’s facility in Bayelsa State emitted poisonous gas.
The leakage occurred in Adriatic facilities owned by the company and operated by SHELF Oil and Gas Drilling Company Nigerian Limited platform located in Otuo South in Oil Mining Lease (OML) 59 of Sangana community, Brass local government area of the state.
Following the spill, Conoil reportedly ignored the host community, a similar situation that caused Shell, another oil and gas company, $111 million after a Dutch court found the latter guilty of 1970 oil spills in Niger Delta.
With the possibility of a lawsuit hanging on Conoil’s neck, the capital market reacted negatively to the company’s shares a week after the report with stakeholders taking out their funds from the firm.
Goldennewsng.com Nigeria analysis showed that in one week, the company’s chairman, Mike Adenuga, and other shareholders lost N2.63 billion as sell-off dragged the share down by 14.9 percent from N25.5kobo to N21.7kobo per share
