Crude supply to refineries follows willing buyer-willing seller principle, says Kyari
Following allegations of a deliberate attempt by crude oil producers in the country to starve the brand new $20 billion Dangote Refinery of feedstock, the Group CEO, of NNPC Limited, Mallam Mele Kyari has pointed out that crude supply to refineries is determined by the principal of willing buyer – willing seller.
A statement by NNPC Chief Corporate Communications Officer, Mr Olufemi Soneye on Wednesday said Mr. Kyari stated this when testified before the Senate Ad-Hoc Committee investigating alleged economic sabotage in the Nigeria Petroleum Industry.
Kyari, who defended the role played by the national oil company in the saga, said NNPC has not broken any law guiding its operations.
He held that the company “has not breached any of the enabling laws guiding its dealings with partners, hence should be counted out of any claims of economic sabotage”.
He pointed out that “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”.
He maintained that “the law is very clear on domestic crude oil supply obligation and also on providing for local refineries”.
Kyari added that “the same law also said that there must be a willing buyer and a willing seller”.
Kyari, who also spoke on alleged importation of substandard products into the country, said the NNPC Limited has nothing to do with that as the relevant regulatory agencies will, by law, not allow any substandard product into the country.
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.
He said the NNPC Limited has grown from a loss-making position to a profit-making entity, pledging full cooperation towards the Committee in its efforts to unravel the allegations being investigated.
Kyari said the NNPC Limited, its entire board, management and staff remain loyal, faithful and committed to Nigeria and will continue to act in line with the provisions of the Petroleum Industry Act (PIA), the Company & Allied Matters Act (CAMA) and other enabling laws and regulations governing the nation’s energy Industry.
“We are faithful, loyal and committed to the progress and development of this country. It is our duty to protect the overall interest of this great nation. We are not in breach of any rules,” Kyari concluded.
Dangote had two months ago accused oil producers in the country of failing to supply the refinery with the required crude needed for its operation.
