Firm indicted by NNPC Ltd in adulterated fuel supply, denies involvement

Emadeb/Hyde/Ay Maikifi partners in the Emadeb/Hyde/Ay Maikifi/Brittania-U consortium has denied involvement in the supply of adulterated fuel into the country.

Nigerian National Petroleum Company (NNPC) Limited had identified the consortium as one of those that imported contaminated Premium Motor Spirit (PMS) with higher concentrates of methanol.

“We hereby state that the said importation of the contaminated PMS was executed by a member of the consortium, to wit: Brittania-U.

“Brittania-U Nigeria Limited (Brittania-U) was the sole supplier of the 90,000MT of PMS delivered via MT Torm Hilde with laycan January 2 to 4, 2022.

“At the formation of the Consortium in May 2021 by NNPC, Brittania-U refused to execute the Service and Consortium Agreement submitted to NNPC in fulfillment of the award of the DSDP Contract.

“Emadeb as the lead of the Consortium engaged Brittania-U severally and they insisted on dealing with NNPC independently. NNPC was expressly notified about this by the other Consortium members via a letter dated June 2, 2021.

“Further, Brittania-U vehemently refusing to execute the Consortium Agreement with the other Consortium members – EMADEB/HYDE/AY MAIKIFI- was surprising and frustrating to everyone.

“Brittania-U communicated all her actions to the other Consortium members and NNPC,” it said in a statement by Lead Consortium Emadeb Energy Services Limited.

It added that in the light of these development, Brittania-U indemnified the other consortium members – ‘’Emadeb/Hyde/Ay Maikifi’’ and an agreement was executed by their company on June 16, 2021.

It reads in part: :The Indemnity clause contained in the aforementioned agreement covers “Emadeb/Hyde/Ay Maikifi’’ against all damages, losses, costs, expenses (including reasonable legal costs, expenses and attorneys’ fees) and liabilities incident to claims, demands or causes of action brought by or on behalf of any person or entity.

“Which claims, demands or causes of action arise out of, are incident to or result from the performance of or failure to perform the Project? The indemnity also covers shortages in delivery of products, late deliveries, delivery of off-spec cargo or other wrongful performance of their obligations in the DSDP agreement.”

In view of the notice of the contaminated product, Emadeb/Hyde/Ay Maikifi immediately notified Brittania-U via a letter dated February 3, and also informed NNPC of the sole liability of Brittania U.

“Based on the substantial evidence provided to NNPC and several declarations by Brittania-U to NNPC, Brittania-U is therefore solely liable for the supply of the PMS via MT Torm Hilde.”

It stated that the other consortium members had performed and delivered 270,000MT of PMS in the last five months and they were certified by the NNPC-nominated inspector without any complaint or adverse issues.

It added that out of the 270,000MT of PMS, 90,000MT is currently discharging via MT Fair Seas offshore Lagos.

“EMADEB/HYDE/AY MAIKIFI will continue to work with NNPC and perform creditably on all our obligations. As reputable companies, we will not associate ourselves with any activity that will be to the detriment of the citizens of the country.

“We are ready to give our full and maximum cooperation to any government investigation panel and/or any agency with all the relevant documentation and/or information that may be required.”

Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Abuja Zonal Office, says it has intensified surveillance on fuel stations to ensure uninterrupted petrol supply and prevent sale of adulterated product to public.

The NMDPRA also confirmed availability of Premium Motor Spirit (PMS), known as Petrol and warned the public not to patronise black marketers to avoid purchasing adulterated product.

Assistant Director, NMDPRA Abuja Zonal Office, Mr Aminu Sanusi, made this known on Wednesday in Abuja during its surveillance on some fuel stations in the Federal Capital Territory (FCT), Abuja.

The Authority had announced that a limited quantity of PMS, with methanol quantities above Nigeria’s specification was discovered in supply chain but withdrawn from the market to ensure vehicular and equipment safety.

On this background, Sanusi said it intensified surveillance on fuel stations to ensure delivery of concerned product from the depot, sale of only quality product, assessment of situation and pumps, and to ensure all operations were carried out in safe manner.

The stations which NMDPRA’s surveillance team visited included; NIPCO and Mobil stations in Jabi district, AA RANO and Shema, Asokoro district, AYM Shafa energy, Kubwa express way, Conoil, Oando and NNPC in Central Business District, among others .

Speaking on the withdrawn adulterated PMS, he said it found its way to Suleja depot which comprised of professional officials who were able to discover it though it was realised that some had gone out of the depot.

He noted that in the course of its routine check last week, it stumbled on the off-spec (adulterated/substandard) product and stopped it from circulating.

“On daily basis we conduct this exercise to monitor all the retail outlets to ensure that all products lifted from the depot are dully dispatched and sold to the public in accordance to government regulated price.

“We have a laboratory and team on sampling, if they discover any off-spec product, arrangement will be made for its evacuation.

“Every petroleum product has its own specific requirement, for each of the parameter, there is a certain range for which Nigeria standard approves it to be sold to the public.

“If it fails to meet any of the critical component, we define it as off-spec, which is not healthy or safe to sell to the public but if it meets requirement we define it as on-spec product,’’ he noted.

Sanusi explained that the queues being seen was triggered by the initial anticipation of subsidy removal and later by the gap caused by the substandard product withdrawn from market.