By Chisaa Okoye
Brittania-U Nigeria Limited (BUNL) has been identified as the firm that solely imported the adulterated petrol into Nigeria. BUNL is chaired by Mrs. Uju Ifejika.
The Group Managing Director/Chief Executive Officer of the NNPC Ltd, Mele Kyari, Thursday named the four companies that imported the petrol containing a high level of methanol as MRS, Oando, Duke Oil and a consortium of consisting Emadeb/Hyde/AY Maikifi/Brittania-U.
But Emadeb/Hyde/ Ay Maikifi Consortium has denied involvement in the importation of the adulterated petrol, revealing that a member of the consortium, Brittania – U, which decided to go solo in the arrangement was the importer of the bad fuel.
The consortium, Emadeb/Hyde Aymaikifi in a press statement, by the lead partner, Emadeb Energy Services said that Brittania-U Nigeria Limited (Brittania-U), a member of the consortium was the sole supplier of the 90,000MT of PMS delivered via MT Torm Hilde with laycan January 2 to 4.
The oil firms alleged that “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.”
According to the firms, 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,” the statement added.
“We hereby state that the said importation of the contaminated PMS was executed by a member of the consortium, to wit: Brittania-U. Therefore said the blanket claims made against the consortium by the NNPC are misleading and contradict the actual events that happened; they do not fully reflect and/or represent what transpired.”
“It is important to inform the public of these facts and provide clarifications relating to the delivery of the said contaminated PMS to the country. We also deem it necessary to protect our image as we have invested a lot in building our respective brands in the industry.”
The facts as stated by the consortium:
1. Brittania-U NigeriaLimited(Brittania-U)was the sole supplier of the 90,000MT of PMS delivered via MT Torm Hilde with laycan January 2 to4,2022.
2. 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 datedJune2, 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 harping on the following points: a) “Brittania-U’s preference to perform a sole contract for Crude lifting and PMS supply under the DSDP arrangement.”
B.) “Brittania-U’s choice to be solely liable under her supplies to NNPC and in the light of which she indemnified the other Consortium members accordingly;
c) Non-acceptance of the nominated international partner agreed by other Consortium members–EMADEB/HYDE/AYMAIKIFI; and,
d) Brittania-U’s unwillingness to co-operate or share information and documents with the other Consortium members in respect of the December 2021 crude cargo allocated to her by NNPC.”
“Following the repeated refusal of Brittania-U to work with the Consortium, Brittania U indemnified the other consortium members– Emadeb/Hyde/Ay Maikifi’’and the resulting 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.”
“EMADEB/HYDE/AYMAIKIFI via a letter dated December 10, 2021, informed NNPC of non-receipt of information from Brittania-U on all correspondence relating to the DSDP crude cargo allocated to them.
We further stated that Brittania U’s action contradicts all efforts to ensure performance on her allotted crude cargo. “
“In view of the notice of the contaminated product, Emadeb/Hyde /AY MAIKIFI immediately notified Brittania-U via a letter dated February 3, 2022, and also expressly 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.”
“This is also demonstrated by their unwillingness to be part of the consortium; however, all the other parties were duly indemnified by Brittania-U. The other Consortium members -Emadeb/Hyde /AY MAIKIFI 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.’Out of the 270,000MTof PMS,90,000MT is currently discharging via MT Fair Seas offshore Lagos.”
“All records showing our performance are available with NNPC for verification and validation. 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. EMADEB/HYDE/AYMAIKIFI believe that these stated positions of ours have demonstrated that we are not the suppliers of the said contaminated PMS. We implore all our customers to continue to patronize all services provided by Emadeb/Hyde and AYMaikif”.
Oando punished in 2008 over Ethanol Blended PMS
Similarly, MRS and Oando were said to have denied complicity in the bad fuel importation.
“Following media reports listing Oando as one of four importers that supplied methanol-blended Premium Motor Spirits (PMS) into the country, we hereby state that Oando did not import and supply PMS that was adulterated or substandard.. “The PMS supplied by Oando met Nigeria’s import specification”, the firm was quoted as saying.
In 2008, Oando Plc was sanctioned by the defunct Department of Petroleum Resources (DPR) for importing petrol high in Ethanol into the country from Amsterdam.
Gunvor International BV, Amsterdam, Supplier of the PMS, had denied selling contaminated fuel to Oando Plc insisting that the product was certified and the load complied with all necessary and contractual specifications.
But Oando had maintained that the issue of high ethanol content was willfully concealed from it (Oando) by the supplier (Gunvor).
Lawmakers Seek Sanction against Culprit (s)
The House of Representatives on Thursday urged the Nigerian National Petroleum Company (NNPC) Limited to suspend the four companies which recently imported adulterated fuel into the country.
The lawmakers also mandated its committee on petroleum downstream to investigate the release and sale of the off-spec Premium Motor Spirit, otherwise known as petrol by filling stations across the country and to ensure the culprits are brought to book.
The lower legislative chamber gave the directive on Thursday following a motion of urgent public importance by the Chief Whip of the House, Mohammed Monguno.
The lawmakers, during the plenary on Thursday expressed concern over the effect of the adulterated petrol on vehicles and how the cost of transportation, goods, and service has increased due to the scarcity of petrol.
Pointing out that the system is completely compromised, considering the processes which the fuel must go through before reaching the retain stations, the lawmakers urged that Nigerians whose vehicles and equipment were directly affected by the adulterated fuel be compensated.
Buhari Insists Bad Fuel Importers Must Face the law
Irked by the development, President Muhammadu Buhari has directed the relevant authorities to fish out those responsible for the importation of the off-spec petrol into the country and to ensure they are held accountable.
In a statement by his Senior Special Assistant on Media and Publicity, Garba Shehu, President Buhari also ordered relevant regulatory and government agencies to “take every step in line with the laws of the country to ensure the respect and protection of consumers against market abuses and social injustices.”
“In a reaction to the issue of petroleum product shortages linked to the inadvertent supply of products of foreign origin into the Nigerian market, President Buhari said the protection of consumer interests is a priority of the present administration and is ready to take all necessary measures to protect consumers from hazardous products, loss or injuries from the consumption of substandard goods.
“The president directed that in line with the law, service providers must make full disclosure of relevant information with respect to the consumption of their products and that dissatisfied consumers are entitled to a proper redress of their complaints”, the statement added.