Wabote advocates corporate governance for indigenous oil firms, lauds Aradel Holdings

Indigenous oil and gas companies must instill principles of corporate governance in their
operations if they are to grow and achieve sustainability, the Executive Secretary of the
Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote
has said.
Speaking virtually on Friday at the rebranding event of the Niger Delta Exploration and
Production (NDEP) company into Aradel Holdings, the Executive Secretary rued that many
local oil and gas companies have closed shop because they did not adhere to corporate
governance principles.
He lauded the management of Aradel Holdings for setting high standards of corporate
governance, stating that “one of the incredible things the Chairman, Chief Ladi Jadesimi; the
former Managing Director, Dr. Layi Fatona and their team have done is instilling the spirit of
corporate governance. That is why the company is succeeding. The owners of the business
are not contractors; they do not engage contractors and they do not engage in round-
tripping. That has led to their success.”
Speaking further, Wabote described Aradel Holdings as a good example, noting that they
have made significant returns to their joint venture partners. “They are one of the local
companies that NNPC Limited is proud to associate with. NCDMB is also proud of their
success and we will continue to support them,” he assured
The NCDMB boss urged indigenous producers to emulate Aradel Holdings and to take
corporate governance seriously, recommending that owners of businesses should detach
themselves from the daily operations of their organisations.
Dwelling on local content development, Wabote challenged Aradel Holdings to champion
the development of local content, stressing that the implementation of the Nigerian
Content initiative and the Nigerian Oil and Gas Industry Content Development (NOGICD) Act
enabled indigenous producers to thrive. He insisted that it is the responsibility of Aradel
Holdings and other local producers to support local content, protect and enhance it, with a
view to creating jobs, growing technology, and developing the nation’s natural resources.
He remarked that the percentage of unemployed Nigerians was over 30 percent, warning
that it would be a grave mistake if the oil industry were to de-emphasise local
manufacturing and local production.
He also challenged Aradel Holdings to play an active role in the acquisition of assets being divested by international operating oil companies.Earlier in his speech, the chairman of Aradel Holdings, Chief Ladi Jadesimi traced the history of the firm, noting that it had operated in the past three decades and pioneered several initiatives, including marginal field operations, one of which is the Okpele Field, which it has grown its daily production from about 1,000 barrels of crude oil to 13,000 barrels. The company is also a fully integrated oil and gas company, and also pioneered modular refinery initiatives with the first train of 1,000 barrels per day, which has since expanded to 11,000 barrels per day.
In his comments, the Managing Director of Aradel Holdings, Mr. Adegbite Falade described the new name as an acronym of the founding Chairman, late Chief Aret Adams, and the firm’s original name and area of operations, which is the Niger Delta region. The new name also signified the company’s resilience and preparedness to meet the challenges of energy transition and security as well as become the leading energy company in the country, he added. Falade also announced that the company’s modular refinery will soon commence refining premium motor spirit, alongside other major projects the firm plans to embark on.

