Importers Of Adulterated PMS Are referred To As NNPC

(THEWILL) – On February 10th, MRS and three other companies have been named by the Nigerian National Petroleum Company (NNPC) Limited as being responsible for the importation of the controversial methanol blended petrol into the country.

 

Mele Kyari, Group Managing Director of NNPC Ltd, made the announcement during a media briefing on Wednesday night.

 

According to Kyari, the methanol blended gasoline was imported into the country by the suppliers via four Premium Motor Spirit cargoes under its Direct Sales Direct Purchase (DSDP) arrangement.

 

The DSDP is one of the NNPC's measures to ensure a steady supply of petroleum products in the country.

 

The DSDP is a contract that allows the NNPC to deliver monthly crude oil lifting on a free on board basis. (FOB) basis to suppliers who shall in return, deliver petroleum products of Nigerian standard specification to NNPC on a 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 NNPC subject to the general terms and conditions as would be advised to successful companies subsequently via Term Sheet (TS).

 

According to the NNPC, 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.

 

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The revelation is coming a few hours after MRS issued a statement where it claimed that the NNPC imported the product.

 

MRS had in a 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.

 

He said the NNPC will work with the Midstream and Downstream Petroleum Regulatory Authority 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 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, 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 load port (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 imports to Nigeria, the cargoes were equally certified by an inspection agent appointed by the Midstream and Downstream Petroleum Regulatory Authority that has met Nigerian specifications.

 

"It is important to note that the standard quality inspection protocol used in both the load port in Belgium and our discharge ports in Nigeria does not include the test for percent methanol content, and thus the additive was not detected by our quality inspectors," he added.

 

"We have ordered the quarantine of all un-evacuated volumes and the holding back of all affected products in transit in order to prevent the distribution of the gasoline" (both truck & marine).

 

"All defaulting suppliers have been put on notice for corrective actions, and NNPC will work with the authority to take any additional necessary actions in accordance with current regulations."

 

"NNPC wishes to reassure Nigerians that additional cargoes are currently being sourced to ensure product sufficiency."