NNPC to recover $184 million crude swap under-deliveries from companies

The Nigerian National Petroleum Corporation (NNPC) is set to recover over $184 million in product under-deliveries recorded against three oil companies in the course of reconciliation of transactions executed during the defunct crude for product swap regime.

Group Managing Director of the Corporation, Dr. Maikanti Baru, told journalists in Abuja that the exercise is a product of ongoing extensive reconciliation process with the companies involved- AITEO Energy Resource Limited, Ontario Oil and Gas Limited and Televaras Group of Companies.

A statement by the corporation’s Group General Manger, Group Public Affairs Division, Mr. Ndu Ughamadu, quoted Baru as saying: “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.”

Baru also said Ontario has already pledged to repay $17m and commended the company for its cooperation so far. The GMD said the ongoing recovery process is geared towards ensuring probity and accountability in the operations of the corporation in line with current reforms in the industry.

He stressed the determination of the NNPC under his leadership to recover the outstanding stock of its missing petrol in Capital Oil depot, noting that MRS had complied.

Last week, the NNPC announced aggressive measures to achieve full recovery of over 130 million litres of petrol stored in the facilities of MRS Limited and Capital Oil and Gas Limited, under a throughput arrangement to ensure a robust strategic reserve.

Providing details of the infraction by the companies, Mr. Henry Ikem Obih, NNPC Chief Operating Officer, Downstream, explained that the violation was discovered earlier in the year when the corporation had need to access the over 100 million litres of petrol stored at the Capital Oil and Gas depot for NNPC Retail and just over 30 million litres in MRS Limited depot, all in Apapa area of Lagos.
 
He said though MRS had fully complied by returning the 30 million litres of petrol it expropriated, the corporation was working assiduously to recover from Capital Oil and Gas, the 82 million litres of petrol, valued at N11billion, out of over 100 million litres.