Consortium blames importation of 90,000 metric tonnes of toxic  fuel on NNPC-Marketer deal 

 

 

. Says 27,000 metric tonnes methanol free petrol  imported for 6 years.

Ezieke Jonas

 

 

 

Chairman of the Oil Marketers Consortium on Import of Petroleum Products Mr.Adebowale Olujimi on Tuesday told the House of Representatives Committee on Petroleum Resources (Downstream) investigating the importation of 9,000 adultrated metric tonnes of petroleum products into Nigeria to blame the Nigeria National Petroleum Company (NNPC) and Britannia U deal on the importation of the said bad product.

 

He made the plea at an investigative hearing of the House Committee led by Hon. Abdullahi Mahmud Gaya mandated by the House to unravel the principal culprits in the unwholesome petroluem products saga.

 

 

 

Olujimi said that the consortium would like to thank the NNPC for giving indigenous companies the opportunity to participate in the Direct Sale and Direct Purchase (DSDP) Contract; thereby enabling healthy and safe competition with other International trading companies and refiners.

 

He assures the House Committee of the group’s commitment to contribute towards the federal government’s effort in providing energy security and stimulation of economic growth in Nigeria.

 

 

He also noted that such encouragement has led to increase in business know-how and our Indigenous oil and gas companies have truly shown capacity by delivering on all the mandates given by agency.

 

 

 

 

 

According to him, to ease the challenges faced by the good citizens of Nigeria in accessing petroleum products, the Federal Gevernment of Nigeria FGN through her regulatory body – NNPC awarded Direct Sale and Direct Purchase DSDP Contract to indigenous companies to encourage delivery of petroleum product and crude lifting in equal commercial value.

 

He further hinted that in the past, over-dependent of the federal government in importation and distribution of petroleum products had aggravated constant scarcity and economic loss to the country and her citizens.

 

He however noted that through the DSDP arrangement, the current dispensation under the leadership of President Muhammadu Buhari, his administration have recorded significantly improved supply of petroleum products nationwide over the last seven years.

 

He said that the submission of an executed consortium agreement was one of the pre-requisites required by NNPC for the final award of the DSDP contract.

 

On the importation of adultrated petroleum products, he said that on June 16, 2021, the consortium members executed a consortium agreement which defined the rotational responsibilities of members, sequential alternate crude lifting/petroleum product delivery and indemnification of other members against liabilities, claims, etc., that may arise during a member’s underperformance or failure to perform under the DSDP contract.

 

He  explained that the Consortium was awarded the DSDP contract on June 22, 2021 by NNPC adding that  the delivery of the Petroleum, product and crude lifting have been done strictly on a rotational basis by the respective consortium members.

 

He alleged that one of the consortium members  Britannia U against the agreement entered into by members decided to liase directly with the NNPC and took responsibility for all her actions without recourse to other members.

 

He added that other members of the consortium including Emadeb/Hyde and AY Maikifi had engaged a reputable international company for delivery of all PMS cargoes and prompt loading of crude oil; while Brittania-U chose to engage a different entity for her own supplies.

 

The Chairman of the consortium further said that other consortium has successfully delivered 270,000 Metric Tonnes (MT) of Premium Motor Spirit (PMS), while Brittania U also delivered 90,000MT PMS.

 

He also stated that Prmium Motor Spirit PMS alleged to be Methanol-Blended was solely delivered by Brittania-U via MT Torm Hilde in January 2022.

 

The oil maketer also said that other consortium members namely Emadeb/Hyde and AY Maikifi were not privy to the arrangements for the delivery of the aforementioned PMS and there is no documentary evidence relating to the PMS.

 

He also told the House Committee members that Brittania-U as a company should be asked to provide all answers to the queries regarding the adultrated petroleum products imported into the country.

 

 

At the hearing the Chief Executive Officer of Brittania U Ltd Uju Ifejika told the probe panel that before a cargo carrying petroleum product is imported, the NNPC conducts testing of the product at the point of loading.

 

She further said that the company imported a cargo of petroleum product on January 4, 2022 from one of its major business partners in Antwerp Belguim but the NNPC did not do a joint testing of its product before alleging it adulterated it with methanol.

 

The Committee Chairman Hon.Gaya nonetheless demanded that the CEO of Britannia U Ltd submits 50 copies of its responses to the questions posed by the Committee members on the adulterated petroleum products by the company.