TheCable

Ocean Marine Security Limited (OMS) has denied claims that the contract for the transportation of crude oil by marine vessels from Escravos terminal to Warri refinery was secured and carried out in questionable manner.

OMS, promoted by Tunde Ayeni and Hosa Okunbor, said it saved the nation about $2 billion that would have been lost to vandalised pipelines and crude oil theft had NNPC not opted for marine vessel transportation.

In a statement released on Friday, the company, which acquired PPP Fluid Mechanics Limited through share purchase agreement, said the contract was secured in an open international competitive bidding in which 13 other companies participated.

“For instance, while the reports claimed that the contract was awarded at the cost of $15.4 per barrel, the company disclosed that the contract cost never exceeded $5.68 per barrel while it lasted, and that was inclusive of provision of dedicated security posts in addition to the transportation of crude oil to the refineries,” the statement in respect to reports that “misrepresented the terms of the contract”.

The statement further said OMS delivered a total of 65, 597, 698 barrels of crude oil to refineries between 2011 and 2015, the exact figure that was made available at the drilling terminals.

“Such media claim that OMS delivered less than what it received from drilling terminals is an embarrassing demonstration of ignorance by the section of the media that came up with the report. NNPC has its records of what each vessel loaded and discharged. In any case, if that was true, wouldn’t the present government have summoned the company to come and account for the alleged shortage?” it said.

The company said NNPC had embarked on marine vessel transportation of crude oil after a report commissioned by the corporation indicated that it was no longer economical to transport crude oil from Escravos to Warri refinery through the pipeline as a result of unsustainable expenditure of about $121 million for the maintenance and repairs of the Escravos-Warri broken crude oil pipeline.

“The report further indicated an estimated 40-60 percent loss of crude oil pumped through the Escravos-Warri pipelines owing to ceaseless pipeline vandalisation and oil theft. Another indisputable fact is that before the engagement of PPPFM, the Warri and Kaduna refineries had been shut down for about 48 months owing to non-supply of crude oil feedstock to keep the refineries running.”

OMS said it saved the nation about $2 billion through marine vessel transportation.

“This saving is definitely more if the analysis were to be based on the additional loss recorded while pumping crude oil through the Port-Harcourt-Bonny-Okrika pipeline,” it said.

“It must be stated for public records and without fear of contradiction that OMS is a projects solution providing corporate concern and not a trading company. NNPC, as a performance driven corporation, has never found us wanting in delivering quality service and the records are there to attest to this. We are not a trading company, we have never traded in one barrel of crude oil or one litre of product whether legally or illegally.”