Oil & gas looks to prez for $40 million investment

WINDOW ROCK

Louis Denetsosie is scheduled to meet with President Russell Begaye today in an effort to convince him to support attempts by the Navajo Oil and Gas Company to get a $40 million investment by the tribe into the company.

Denetsosie is CEO of the oil and gas company, which is facing serious financial problems that go back several years.

In 2013, Denetsosie took over for Robert Joe as CEO at a time when the entire board was replaced. The fight between the new and old boards went on for more than a year with each saying the other was illegitimate.

At the time, the oil and gas company had more than $70 million in loans from several banks and because of the dispute, banking officials were worried and started calling in the loans.

Denetsosie and others with the company now claim that because of past mistakes by the former administrators and low crude oil prices, they cannot pay the banks and that the company will soon be in default to the banks for $40 million.

Denetsosie and the company want the Navajo Nation Council to take $40 million from the master trust and invest in the company so it can pay off the banks.

The company already has the support of the Council’s Budget and Finance Committee and may have enough votes to get the proposal passed. But no one knows if they have enough votes to overturn a veto from Begaye, which is the reason for today’s meeting.

One thing is for sure – Denetsosie has a major challenge before him if he wants Begay’s support.

In 2013 when Begaye was a member of the Council and of the shareholder’s committee for the company, he was one of the strongest critics of Denetsosie and the board now in power.

Aides to Begaye say that hasn’t changed and he has been saying that before he supports any funds going to the oil and gas company, he wants to see the current board and top officials of the company replaced.

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