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Off-spec PMS: NNPC tested and certified our cargo, Brittania-U tells reps

Off-spec PMS: NNPC tested and certified our cargo, Brittania-U tells reps
February 23
08:19 2022

Uju Ifejika, chief executive officer (CEO) of Brittania-U, says the company followed all regulatory procedures and guidelines before importing the petrol.

Ifejika spoke on Tuesday when he appeared before the house of representatives committee on petroleum downstream.

The Nigerian National Petroleum Company (NNPC) Limited had named a consortium among the suppliers that brought in methanol-blended petrol from Belgium.

The consortium comprises four companies of Emadeb, Hyde, Ay Maikifi and Brittania-U.

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Subsequently, the lower legislative chamber summoned NNPC and the oil companies involved in the saga.

TheCable had reported how three members of the consortium — Emadeb, Hyde, Ay Maikifi — denied involvement in off-spec petrol importation.

Speaking at the panel session, Brittania-U’s CEO said the company had imported ten different cargoes, and none of “our cargoes was off-spec and this particular one was not off-spec”.

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“We have a DSDP contract with NNPC and we have done DSDP with NNPC of two and a half years, and we have brought in 10 cargoes,” she said.

“This is our tenth cargo and none of our cargoes was off-spec and this particular one was not off-spec. Before a cargo will come in, there will be a test at the port of loading, which they did at Antwerp. This time, our supplier, Petraco, did their sample at Antwerp and they gave us their sample result which we gave to NNPC and NNPC confirmed that it was okay.

“The second point of test — the cargo arrived at offshore Lagos. The vessel tendered notice of readiness of the vessel (that was) arriving. The NoR, we sent it to NNPC officially and they now appointed their inspector and the inspector then appointed his GMO. They went offshore to test the product.

“When they finished testing the product, there is a joint certificate given by GMO – that is NNPC-nominated – and our own. You can’t bring in the cargo without NNPC’s inspector jointly carrying out the initial test. And the test is here. We will present it to you. It met the specification.”

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Mele Kyari, group managing director of NNPC Limited, had said the country doesn’t test for methanol content in petrol.

The consortium led by Emadeb Energy Services Limited alleged that Brittania-U imported the controversial product in the country out of the scheme.

Olujimi Adebowale, CEO of Emadeb Energy Services, told the panel.

Adebowale said Brittania-U solely imported product fuel without recourse to the partners of the consortium.

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“Following the participation of the respective companies in the 2021/2022 DSDP tender, NNPC formed our consortium — Emadeb/Hyde/AY Maikifi and Brittania-U with Emadeb as lead on May 7, 2021,” he said.

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

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“On June 16, 2021, the consortium members executed a consortium agreement that 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.

“The consortium was awarded the DSDP contract on June 22, 2021, by NNPC. The delivery of the petroleum product and crude lifting has been done strictly on a rotational basis by the respective consortium members.

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“Some of the consortium members — Emadeb/Hyde and AY Maikifi immediately 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 own supplies.

“Brittania-U also preferred to liaise directly with NNPC and took responsibility for all her transactions without recourse to the other consortium members. All evidence to substantiate Brittania-U’s position is attached for reference.

“The other consortium members – Emadeb/Hyde and AY Maikifi have successfully delivered 270,000 Metric Tonnes (MT) of Premium Motor Spirit (PMS), while Brittania U also delivered 90,000MT PMS.

“The PMS alleged to be Methanol-Blended was solely delivered by Brittania-U via MT Torm Hilde in January 2022. The other Consortium members —–Emadeb/Hyde and AY Maikifi were not privy to the arrangements for the delivery of the aforementioned PMS and documentary evidence relating to the PMS.

“It is worthy to mention that Brittania-U should be allowed to provide all answers to the controversy surrounding the importation of the PMS product.

“From this standpoint, other Consortium members — Emadeb/Hyde and AY Maikifi would like to crave your indulgence and request that you exempt us from this meeting. We also believe that you will let our citizens know that we were not part of the companies that imported the alleged methanol-blended PMS.”

Ahmad Gaya, chairman of the committee, said the lawmakers would review the documents submitted by the oil firms and decide on the matter.

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