The Chairman of Capital Oil, Mr Ifeanyi Ubah, currently
embroiled in crisis with Nigerian National Petroleum Corporation
(NNPC) over product diversion, has alleged the corporation is owing
him N16 billion.
NNPC has been tackling Ubah over N11 billion which it claimed
was the worth of the product which Capital Oil diverted.
Ubah made the disclosure at the on-going public hearing
organised by the House of Representatives Committee on Petroleum
Downstream.
The committee is investigating the alleged disappearance of 82
million metric litres of petrol belonging to NNPC that was stored
at Capital Oil tank farm in Lagos.
Ubah said that instead the national oil corporation was owing
him N16 billion.
According to him, NNPC blew the entire incident out of
proportion.
He added that claims and counter claims by both parties were
subject of litigation and investigation by anti-graft agencies.
“The contract which is what we operate with NNPC puts us in a
position of a stock manager which is somewhat the vessel akin to an
oil bank.
“This allows for coming in and loading out of products so long
as we ensure that all parties having products in our storage
ultimately receive their total stock.
“The NNPC in the past has also borrowed products from us to keep
their supply and distribution chain running.
“NNPC claimed that we owe N11 billion but failed to reveal that
they owe us N16 billion with a key portion of the debt spanning
over two years,” Ubah said.
He added that his company had not denied that it had in stock
products belonging to NNPC but accused the national oil company of
failing to conduct a reconciliation with Capital Oil before rushing
into making allegations.
Uba said the contract his firm had with NNPC did not contain any
clause for the payment for products in its tank farm in cash in the
event that NNPC needed its products.
“But it provides for a two-week notice for Capital Oil to be
informed to replace the volume of products to meet any
shortfall.
“We duly paid for product from NNPC and were issued loading
permit.
“However, NNPC diverted the vessel that was supposed to deliver
the product and has till date refused to deliver same, thereby
causing a break in the chain of product flow that would have
plugged any gap.
“The unprofessional way in which the issue was handed led to a
run on our company operations thereby destabilising our business
and causing us to shut down our operations.
“The circumstances have caused us billions of naira in losses
and serious dislocations for our workers,’’ Ubah said.
He further said that on many occasions Capital Oil had loaned
millions of litres of petroleum products from its storage to the
NNPC group without alerting or alarming the public.
“We have always kept the confidentiality of our relationship
sacrosanct.
“It is in the light of these indisputable circumstances that we
were shocked at and disappointed with the actions of the NNPC in
throwing the issue to the public.’’
He also condemned NNPC for calling in law enforcement agencies
without fully exploring available dispute resolution mechanism
available within the purview of their contractual relationship.
“However, we have submitted these issues to the jurisdiction of
the courts and the relevant law enforcement agencies,’’ Ubah
said.
He bemoaned the sacking of the former Managing Director of NNPC
Retail over the alleged diversion incident, insisting that the sack
was done in bad faith.
Earlier, the acting Managing Director, NNPC Retail, Mr Danjuma
Dansule, said that the total shortfall of petroleum products
allegedly diverted by Capital Oil was 82 million metric litres.
Dansule said that this amounted to N11.144 billion out of which
two billion naira part payment had been made as at April.
He, however, said that negotiations were on-going as to the
actual value of the alleged diverted product and the interest to be
paid by Capital Oil.
He also said that Capital Oil was owing NNPC another N359
million under the Kerosene Direct Scheme. (NAN)
The Chairman of Capital Oil, Mr Ifeanyi Ubah, currently
embroiled in crisis with Nigerian National Petroleum Corporation
(NNPC) over product diversion, has alleged the corporation is owing
him N16 billion.
NNPC has been tackling Ubah over N11 billion which it claimed
was the worth of the product which Capital Oil diverted.
Ubah made the disclosure at the on-going public hearing
organised by the House of Representatives Committee on Petroleum
Downstream.
The committee is investigating the alleged disappearance of 82
million metric litres of petrol belonging to NNPC that was stored
at Capital Oil tank farm in Lagos.
Ubah said that instead the national oil corporation was owing
him N16 billion.
According to him, NNPC blew the entire incident out of
proportion.
He added that claims and counter claims by both parties were
subject of litigation and investigation by anti-graft agencies.
“The contract which is what we operate with NNPC puts us in a
position of a stock manager which is somewhat the vessel akin to an
oil bank.
“This allows for coming in and loading out of products so long
as we ensure that all parties having products in our storage
ultimately receive their total stock.
“The NNPC in the past has also borrowed products from us to keep
their supply and distribution chain running.
“NNPC claimed that we owe N11 billion but failed to reveal that
they owe us N16 billion with a key portion of the debt spanning
over two years,” Ubah said.
He added that his company had not denied that it had in stock
products belonging to NNPC but accused the national oil company of
failing to conduct a reconciliation with Capital Oil before rushing
into making allegations.
Uba said the contract his firm had with NNPC did not contain any
clause for the payment for products in its tank farm in cash in the
event that NNPC needed its products.
“But it provides for a two-week notice for Capital Oil to be
informed to replace the volume of products to meet any
shortfall.
“We duly paid for product from NNPC and were issued loading
permit.
“However, NNPC diverted the vessel that was supposed to deliver
the product and has till date refused to deliver same, thereby
causing a break in the chain of product flow that would have
plugged any gap.
“The unprofessional way in which the issue was handed led to a
run on our company operations thereby destabilising our business
and causing us to shut down our operations.
“The circumstances have caused us billions of naira in losses
and serious dislocations for our workers,’’ Ubah said.
He further said that on many occasions Capital Oil had loaned
millions of litres of petroleum products from its storage to the
NNPC group without alerting or alarming the public.
“We have always kept the confidentiality of our relationship
sacrosanct.
“It is in the light of these indisputable circumstances that we
were shocked at and disappointed with the actions of the NNPC in
throwing the issue to the public.’’
He also condemned NNPC for calling in law enforcement agencies
without fully exploring available dispute resolution mechanism
available within the purview of their contractual relationship.
“However, we have submitted these issues to the jurisdiction of
the courts and the relevant law enforcement agencies,’’ Ubah
said.
He bemoaned the sacking of the former Managing Director of NNPC
Retail over the alleged diversion incident, insisting that the sack
was done in bad faith.
Earlier, the acting Managing Director, NNPC Retail, Mr Danjuma
Dansule, said that the total shortfall of petroleum products
allegedly diverted by Capital Oil was 82 million metric litres.
Dansule said that this amounted to N11.144 billion out of which
two billion naira part payment had been made as at April.
He, however, said that negotiations were on-going as to the
actual value of the alleged diverted product and the interest to be
paid by Capital Oil.
He also said that Capital Oil was owing NNPC another N359
million under the Kerosene Direct Scheme. (NAN)
Read more https://nairalaw.com/nnpc-owes-capital-oil-n16b-ubah/