FOLLOW UP: Caverton Helicopters doubles down with Shell, takes contract suspension case to NCDMB

Caverton Helicopters Limited is lobbying the Federal Government to prevail on Shell Petroleum Development Company to lift the suspension placed on its offshore aviation contract instead of working to address the compliance issues raised by the international oil company.

WesternPost gathered that Caverton is using strong arms tactics as an indigenous operator to railroad the Nigerian Content Development and Monitoring Board (NCDMB) to fight its battle with Shell, hiding under the Local Content Law.

Then Acting President Goodluck Jonathan had signed the Local Content Bill into law on April 22, 2010. The law was enacted to increase the participation of Nigerian businesses and manpower in the oil and gas sector. Since the law became operational 12 years ago, it has led to more Nigerian ventures taking bigger bite of the upstream and midstream business opportunities.

On the back of the local content law, Caverton Helicopters won a five-year offshore aviation logistics contract to service Shell companies in Nigeria with six helicopters. The contract was first extended by two years to 2017.

WesternPost in an exclusive story published on February 28, 2022 had reported that Shell suspended Caverton’s contract over safety concerns arising from mass exodus of pilots from the company to OAS Helicopters due to months of unpaid salaries and other poor working conditions.

As a follow-up to our earlier story, our source who is very close to developments between Caverton and Shell over the suspended contract but wants to remain anonymous, said Caverton had taken the matter to NCDMB for intervention.

“Instead of dealing with the issues and audit queries that led to the suspension of their contract, Caverton is behaving like a typical Nigerian business. Some of our people will rather rely on using government connections to have their way in any dealing rather than do the right thing. The issues here are technical and safety concerns which Shell has raised. Shell won’t compromise its standards. The fact is Shell has invested and trusted Caverton Helicopters with this business they should have given to a foreign entity.

“Shell has helped Caverton to develop capacity and to grow by awarding the contract to them in the first place. Shell even guaranteed $85m loan for Caverton to be able to perform on the contract. Asking them to close the gaps and resolve the audit queries that led to the contract suspension is standard operating procedure.

“I am aware Shell has responded to NCDMB and insisted that Caverton must correct all the identified operational gaps before the contract can be restored,” the source told WesternPost.

Caverton Helicopters in response to our earlier story via a widely circulated press statement admitted that its contract was suspended by Shell and that its pilots left enmass but cited impact of Covid-19 on the company and that the company was not financially handicapped.

Caverton Helicopters also used the statement to restate its committment to safety in all facets of its operations.

Caverton March 4, 2022 press statement reads: “This statement is to clear the air on some incorrect and sensational allegations peddled about Caverton Helicopters in a recent online publication. Though it is not in our character to blow our trumpets, we make bold to say that Caverton Helicopters’ commitment to safety in all facets of its operations is impeccable and unimpeachable. Also, the company remains financially stable despite the lingering impact of COVID19 on the national and global operating environment.

“The online report falsely alleges that the chairman of our company is a politician or a politically exposed person. Nothing can be farther from the truth. The report also claims that some pilots left the company for another. While this is true, the motive adduced is far-fetched. The country and the industry operate a free-market economy whose cardinal principle is free entry and exit, including for labour. It is within the constitutionally guaranteed rights of those who left the company to do so, as it is within the rights of others to come on board.

“As a matter of fact, the experienced hires by Caverton always come from other companies too, both within and outside the country. Creating a sensation out of some staff leaving one organisation for another organisation amounts to making a mountain out of a molehill. The relevant point is that Caverton always has the required number of well-trained, type-rated and professional crew (pilots and engineers) from virtually all continents of the globe to meet the complex needs of its premium clients.

“It is also worth stating that regular audit review is not alien in a highly regulated sector like the oil and gas industry. The suspension of flights with one of our esteemed clients is to ensure such a review. It is a partial suspension as we still operate from the base. Also, it is not a cancellation of our contract with the company. We are positive that we will return to normal operations once the audit is concluded.”

While Caverton hopes to return to normal operation, almost six weeks after our first story however, Shell has not lifted the suspension on Caverton Helicopters’ contract because the company is yet to meet its minimum safety threshold.