NNPC Headquarters, Abuja

Three oil marketing companies – Aiteo Energy Resource Limited, Ontario Oil and Gas Limited and Taleveras Group of Companies, have agreed to refund to the Nigerian National Petroleum Corporation (NNPC) over $184 million recorded against them as under-delivered petroleum products in the various crude oil swap transactions they entered with the corporation.

NNPC commended Taleveras and other companies involved in the crude swap for reconciling their accounts and agreeing on a settlement plan to bring this long standing matter to a closure.

Taleveras has committed to an initial prompt settlement of $17 million payment and will make further payments in $10 million tranches.

Ontario is yet to submit its repayment plan, whilst Aiteo has reconciled all transactions and is currently not indebted to NNPC.

NNPC said in a statement from its Group General Manager, Public Affairs Division, Mr. Ndu Ughamadu, yesterday in Abuja, that the three oil companies were found to be indebted to the corporation when a reconciliation of transactions executed during the defunct crude for product swap regime, was done by the parties.

Ughamadu also quoted the Group Managing Director of NNPC, Dr. Maikanti Baru, to have stated in the statement that the reconciliatory exercise which resulted in the $184 million refund from firms was part of an ongoing extensive reconciliation process with them.

“We have engaged them and positively too, so far Aiteo has been very cooperative and we had extensive reconciliation across all our chains of businesses where they are involved. In the case of Televaras, they have agreed to make tranche payment of $10 million while Ontario has also agreed to come to the table with our team and present their repayment schedule,” said Baru in the statement.

Baru equally stated that Taleveras has already pledged to repay $17 million. He thus thanked the company for its cooperation so far, and added that the ongoing recovery process was geared towards ensuring probity and accountability in the operations of the NNPC in line with current reforms in the industry.

Under the defunct swap programme which was allegedly opaque, the NNPC exchanged a huge chunk of the 445,000 barrels per day crude oil it got for domestic refining with the oil marketing firms for refined product.

The crude-for-products exchange arrangement was however replaced with a new arrangement referred to as Direct-Sale–Direct-Purchase (DSDP), and in which all the cost elements of middlemen are now eliminated and the corporation given the latitude to take control of the crude oil transaction it enters into with competitively selected partners.

Source: Thi Day

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s