Crude Oil Swap: Defaulting firms agree to pay $184 million to FG

Three crude oil marketing firms on Thursday agreed to
pay over $184 million for under-delivery of crude oil
recorded under the former petroleum product swap
regime, the Nigerian National Petroleum Corporation,
NNPC, has announced.

Under the swap arrangement, the NNPC allocated crude
oil to trading companies in exchange for processed
petroleum products.

The Group Managing Director of the Corporation,
Maikanti Baru, said the repayment agreement was
arrived as part of ongoing reconciliation process with the
three companies, namely AITEO Energy Resource Limited,
Ontario Oil and Gas Limited and Televaras Group of
Companies.

The NNPC, which confirmed the settlement in a
statement, said at the end of the reconciliation exercise
that Taleveras committed to an initial settlement of
$17.2 million payment within two weeks, and a further
payments in $10 million tranches later.

Ontario also agreed to pay $10 million, although the
NNPC did not say how much AITEO agreed to pay.

‘’We have engaged them and positively. So far AITEO has
been very cooperative and we had extensive
reconciliation across all our chains of businesses where
they are involved,” the Group Managing Director of the
NNPC, Maikanti Baru said.

He said Televaras agreed to make a tranche payment of
$17 million, while Ontario has also agreed to come to the
table with our team and present their repayment
schedule.

Mr. Baru commending the three companies involved in
the crude oil swap for coming forward to reconcile their
accounts and agreeing on a settlement plan to bring the
long standing matter to a closure.

The GMD said the ongoing debt recovery process was
geared towards probity and accountability in the
operations of the Corporation in line with current reforms
in the industry.

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

Providing details of the infraction by the companies,
NNPC Chief Operating Officer, Henry Ikem-Obih,
Downstream explained that the violation was discovered
earlier in the year.

Mr. Ikem-Obih said when the Corporation need to access
the over 100 million litres of petrol stored at the Capital
Oil & Gas depot for NNPC Retail and over 30 million
litres in MRS Limited depot all in Apapa area of Lagos, it
was discovered that all the stock had been sold without
due authorization.

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 &
Gas the 82 million litres of petrol, valued at N11billion,
out of over 100 million litres.

Mr. Baru said its management was determined to
recover the missing products from the company.

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