The group managing director of the Nigerian National Company Limited (NNPC), Mr. Mele Kyari yesterday named MRS, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando and Duke Oil as culprits in the importation of contaminated fuel into the country.
He disclosed at a media briefing in Abuja that NNPC’s investigation showed that the companies were complicit in the illicit act.
Kyari said the methanol-blended petrol was imported by the suppliers through four premium motor spirit cargoes under its direct sales direct purchase arrangement.
He said MRS imported the methanol-blended fuel through a vessel named MT Bow Pioneer, while Emadeb/Hyde/AY Maikifi/Brittania-U Consortium brought in the product through a vessel MT Tom Hilde.
He also said Oando, imported its product through a vessel, MT Elka Apollon, while Duke Oil brought its product through MT Nord Gainer vessel.
Kyari said the four companies had been notified to take remedial actions, while promising that NNPC will work with NMDRA for other actions.
“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 and 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,” he said.
He said the cargoes were also certified by inspection agent of NMDRA to have met Nigerian specification.
Kyari said however that the usual quality inspection protocol employed in both the load port in Belgium and discharge ports in Nigeria do not include the test for percent methanol content, explaining why the additive was not detected by Nigeria’s 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 & 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,” he added.
He contended that petrol brought into Nigeria usually does not include the test for the level of methanol content.
He said the methanol blended petrol was imported into the country by the suppliers, including MRS, through its direct-sales-direct-purchase arrangement.
The arrangement allows the national oil company to deliver monthly crude oil lifting on Free on Board (FOB) basis to suppliers who in return are supposed to deliver petroleum products of Nigerian standard specification to NNPC.
The petroleum products delivered are usually equivalent in value to the crude oil received from NNPC subject to the general terms and conditions as advised.
But Kyari said the companies that supplied the methanol blended petrol included MRS which made the importation through a vessel named MT Bow Pioneer.
He said while Emadeb/Hyde/AY Maikifi/Brittania-U Consortium brought in the fuel through a vessel identified as MT Tom Hilde, Oando allegedly brought in the product through a vessel named MT Elka Apollon, while Duke Oil came through MT Nord Gainer vessel.
He maintained that cargoes’ quality certificates issued at the loading port in Belgium, by AmSpec Belgium, indicated that the product complied with Nigerian specification.
Furthermore, he said the NNPC quality inspectors including GMO, SGS, GeoChem and G&G conducted tests before discharge, which showed that the cargo also met the country’s standard.
“As a standard practice for all PMS import to Nigeria, the cargoes were equally certified by inspection agent appointed by the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) 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 per cent of methanol content and therefore the additive was not detected by our quality inspectors,” he said.
Kyari further said the NNPC had ordered the quarantine of all un-evacuated volumes of the contaminated fuel that led to the disruption of the petrol distribution value chain, in order to prevent further distribution.
He stressed that the NNPC and other stakeholders were making serious efforts to resolve issues generated by the supply and discharge of methanol blended product in some Nigerian depots.
He said the NNPC first received a report on January 20, 2022, from its quality inspector of the presence of “emulsion particles” in petrol cargoes shipped to Nigeria from the European country.
“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 & 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,” he added.
He said the NNPC had since ordered the holding back of all the affected products in transit (both truck and marine).
Earlier, MRS had said in a statement that it “remains a responsible corporate citizen and will not be involved in the purchase, importation, distribution or marketing of substandard petroleum products in the country.”
It added: “Due to current subsidy regime, NNPC is the sole supplier of all PMS in Nigeria. Consequently, the NNPC through their trading arm Duke Oil, supplied a cargo of PMS purchased from international trader Litasco and delivered it with Motor Tanker (MT) Nord Gainer. This vessel discharged in Apapa between the 24th and 30th of January, 2022.”
The company further said it received the product in its depot and distributed the product to only eight of its stations in Lagos and described the trending allegation as “mischievous, false and untrue.”
Meanwhile, the minister of state for petroleum resources, Mr. Timipre Sylva said yesterday that federal government had initiated investigation into the supply and circulation of adulterated petrol in the country.
The minister, who disclosed this at the end of the weekly federal executive council meeting held in Abuja, said the government wanted to get to the root of the matter, and warned against hasty conclusions.
“I didn’t expect you to draw any conclusions yet. There will be a major investigation to unravel everything and then let us really get to the bottom of it before we can come back and tell you what is going to happen to the culprits,” he told reporters.
The minister assured that the government would consider compensating those who might have been adversely affected by the bad fuel.
“We know that some people’s vehicles must have also been damaged; that is also going to be taken into consideration in dealing with the situation,” he stated.
On whether the issue was discussed at the meeting and whether the suppliers would be punished, Sylva said, “The issue did not come up in council, but, of course, you will recall I was here yesterday to brief Mr. President on the issue. I’m not in a position to disclose the identities of the companies, but there are some issues and we are actively tackling it.
“Nobody has, before now, checked for methanol in our fuel, it’s not very usual and this is the first time this is happening and the NNPC is up to the task.
“I will also convey your question to the NNPC and maybe the Midstream and Downstream Regulatory Authority, but we are actively handling it and I want to assure you that the problem will be a thing of the past very soon.”
