The Nigerian National Petroleum Company Limited, NNPC, has revealed that contrary to denials by MRS Oil Nigeria Plc, the company and three others imported the methanol-blended premium motor spirit, PMS, otherwise known as petrol into the country.
Group Managing Director of NNPC Limited, Mele Kyari, revealed this during a media briefing on Wednesday night.
Kyari said that the methanol-blended petrol was imported into the country by the suppliers through four PMS cargoes under its Direct Sales Direct Purchase, DSDP, arrangement.
The DSDP, which is part of measures by the NNPC to ensure sustained supply of petroleum products in the country, is an arrangement that allows the NNPC to deliver monthly crude oil lifting on Free on Board, FoB, basis to supplier who shall in return, deliver petroleum products of Nigerian standard specification to NNPC on Delivered at Place DAP, basis, at designated safe port (s) in Nigeria.
The petroleum products to be delivered would be equivalent in value to the crude oil received from the NNPC subject to the general terms and conditions, as would be advised to successful companies subsequently via Term Sheet, TS.
The NNPC also revealed that the four companies that supplied the methanol-blended petrol are MRS, which made the importation through a vessel named MT Bow Pioneer, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, through vessel identified as MT Tom Hilde; Oando, through a vessel named MT Elka Apollon; and Duke Oil through MT Nord Gainer vessel.
Duke Oil is NNPC’s offshore oil trading arm.
The NNPC revelation came few hours after MRS issued a statement claiming that the NNPC imported the product.
MRS had in the statement, signed by the Managing Director, Marco Storari, claimed, “MRS will continue to work with NNPC and NMDPRA, for the evacuation of the contaminated product to NNPC, who is the sole supplier of the product.
“The allegation reported against the company that MRS imported contaminated products, is therefore mischievous, false and untrue. MRS is not an importer of this contaminated PMS into the country, nor does MRS sell substandard products.”
But the NNPC GMD, in the briefing, explained that all the defaulting suppliers have been put on notice for remedial actions.
Kyari added that the NNPC will work with the Midstream and Downstream Petroleum Regulatory Authority, MDPRA, to take further necessary actions in line with subsisting regulations.
He said, “We wish to update our customers and the public on the ongoing efforts by the NNPC and other stakeholders to resolve the issues generated by the unfortunate supply and discharge of methanol-blended gasoline, PMS, in some Nigerian depots.
“On 20th January, 2022, the NNPC received a report from our quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.
“NNPC investigation revealed the presence of methanol in four, 4, PMS cargoes, imported by the following DSDP suppliers, namely: MRS, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando, Duke Oil.
“Cargoes quality certificates issued at loadport (Antwerp Belgium) by AmSpec Belgium indicate that the gasoline complied with Nigerian specification.
“The NNPC quality inspectors, including GMO, SGS, GeoChem and G&G, conducted tests before discharge also showed that the gasoline met Nigerian specification.”
Kyari explained further that as a standard practice for all PMS import to Nigeria, the cargoes were equally certified by inspection agent appointed by the MDPRA has met Nigerian specification.
“It is important to note that the usual quality inspection protocol employed in both the load port in Belgium and our discharge ports in Nigeria do not include the test for percent methanol content and therefore the additive was not detected by our quality inspectors.
“In order to prevent the distribution of the petrol, we have ordered the quarantine of all un-evacuated volumes and the holding back of all the affected products in transit (both truck and marine).
“All defaulting suppliers have been put on notice for remedial actions and NNPC will work with the authority to take further necessary actions in line with subsisting regulations.
“NNPC wishes to reassure Nigerians that we are currently sourcing additional cargoes to ensure product sufficiency.”
