The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Corporation (NNPC) Limited, Mr. Mele Kyari, has said the company is absolutely nothing to do with the importation of substandard petroleum products into Nigeria
The spokesperson of NNPC, Olufemi Soneye, quoted Kyari saying this during a Senate hearing investigating alleged economic sabotage in the Nigeria Petroleum Industry on Wednesday in Abuja.
According to the statement released by Soneye, Kyari said the national oil company has has not breached any of the enabling laws guiding its dealings with partners.
He added that Investors in local refineries ought secure its feedstocks as well as find a market for its refinery.
According to him, this is a straightforward part of the refining business.
“Kyari, who was addressing the Senate Ad-Hoc Committee investigating alleged economic sabotage in the Nigeria Petroleum Industry at the National Assembly on Wednesday, stated that the refining business is a straightforward business which any investor should know before coming into the market.
“Refining business is a straightforward business. You must secure (a source for) your feedstock and you must find a market. This is basic and this determines what happens in any refinery anywhere in the world. That is the business of refining. We have done nothing to sabotage any domestic refinery.
According to the GCEO, the law is very clear on domestic crude oil supply obligations and also on providing for local refineries. However, Kyari added, that the same law also said that there must be a willing buyer and a willing seller,” the statement read in part.
Importation Of Sub-standard Products into Nigeria
Speaking on the allegations of the importation of low quality petroleum products into Nigeria, Soneye conveyed Kyari saying that NNPC has no involvement in such matter.
He added that the regulatory agencies are bound by the law not to allow the importation of substandard products into the country.
Moreover, Kyari said there is enough infrastructure in the country to produce 2 million barrels of crude per day but the challenges of crude oil theft, pipeline vandalism and absence of investment in the upstream are the major factors hindering the sector.
“On the alleged importation of sub-standard products into the country, Kyari said the NNPC Limited has nothing to do with that as the relevant regulatory agencies will, by law, not allow any sub-standard product into the country.
“The GCEO also supported calls for the Ad-hoc Committee to beam the interactive sessions live on national television to prevent misinforming Nigerians.
“He explained that there is enough infrastructure to produce two million barrels of crude per day but the challenges of crude oil theft, pipeline vandalism and absence of investment in the upstream are the major factors hindering the sector,” the statement added.
What you should know
There has been a recent controversy between Dangote refinery and the international oil companies, IOCs, with the former accusing the latter of sabotage and price manipulation.
This conflict led to a review of the guidelines of crude supply between local refineries and the IOCs. The regulatory agency responsible for this, the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) subsequently said this issue has been resolved.
In response also, the Senate has created an adhoc committee to investigate the matter, calling upon all stakeholders involved to deliberate on how to resolve the challenges around the crude oil supply to local refineries.
