Adulterated fuel probe: Importers blame Btittania-U for importing methanol -blended PMS

By Christiana Ekpa

It was a season of denials at the resumed investigative hearing of the House of Representatives Committee on Petroleum (Downstream), as all invited oil companies alleged to have played roles in the importation of fuel suspected to have been blended with methanol into Nigeria a fortnight ago denied responsibility, pointing accusing finger on Brittania-U as the sole importer of the said product.

While the importers: Emadeb/Hyde, AY Maikifi all claimed to have formed a consortium with Brittania-U to facilitate the effective operation of the Direct-sale, Direct-purchase scheme of the Nigeria National Petroleum Corporation, now Nigeria National Petroleum Company (NNPC) Limited, they however informed the legislative panel on Tuesday that Britannia-U, alone got the contract to import from the originating port where the methanol-blended fuel was said to have come from.

Addressing the panel on behalf of the consortium which include Brittania-U, Mr. Adebowale Olujimi applauded the NNPC of its foresight in putting together and supporting the consortium to manage the DSDP agreement which he said was geared towards eliminating product scarcity in the country.

“Our Consortium would like to thank the Nigerian National Petroleum Company (NNPC) Limited for giving indigenous companies the opportunity to participate in the Direct Sale and Direct Purchase (DSDP) Contract; thereby enabling healthy and safe competition with other International trading companies and Refiners. Such encouragement has led to increase in business know-how and our Indigenous Oil and Gas Companies have truly shown capacity by delivering on all the mandates given by NNPC.

“To ease challenges faced by the good citizens of Nigeria in accessing petroleum products, the Federal Government of Nigeria through her Regulatory body – NNPC awarded DSDP Contract to indigenous Companies to encourage delivery of petroleum product and crude lifting in equal commercial value.

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

“On June 16, 2021, the Consortium members executed a consortium agreement which 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 have been done strictly on a rotational basis by the respective consortium members,” he said.

He however stated that one of the parties in the contract, Brittania-U went outside the agreement and initiated communications with the NNPC without the knowledge of others, and without notifying the NNPC that it wasn’t representing the consortium, as a result of which it got the deal and imported the ill-fated product said to be laden with methanol.

“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 her 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 are attached for references.

“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.”