Firms may face sanction over aviation fuel scarcity
By Yakubu Lawal Asst. Energy Editor
FOR making the nation experience an unnecessary scarcity of aviation fuel, two major oil marketing firms, Conoil Plc and African Petroleum Plc (AP), have been sanctioned by their counterparts in the country.
They have been blacklisted from the importation of the product, Aviation Tubine Kerosene (ATK), for one year.
The decision, The Guardian learnt, was informed by the inability of the two companies to meet the deadline for the importation of aviation fuel. The situation has led to an acute scarcity of the product and disrupted air travels in the country.
Under the deregulation policy, the six major marketers usually nominate one of them to import fuel on behalf of the others on a periodic basis.
The other members are, Total Nigeria Plc, Texaco Nigeria Plc, Mobil oil Nigeria Plc, and Oando Plc.
But officials of Conoil Plc who spoke with The Guardian yesterday said that the company rejected the available aviation fuel when it was discovered to be off-specification.
According to an official, there was no way Conoil could have accepted such low quality product for the operators considering the sensitive nature of the aviation industry.
He said that the reason for not meeting the delivery schedule was known to all and that nobody sanctioned the company for non-performance.
The official also attributed the delay to a problem the company had with its partners in the importation who asked for an upward review in the price of the product due to the increasing crude oil prices.
Also speaking with The Guardian on the issue, a manager with AP said that his company was not barred from importation.
But the Nigerian National Petroleum Corporation (NNPC) has described the scarcity as unfortunate blaming the major oil marketers for the crisis.
Its General Manager, Group Public Affairs, Dr. Levi Ajuonuma, in a statement at the weekend noted that as part of the deregulation process in the downstream oil sector, the NNPC had over a year ago disengaged from the supply of the product.
"ATK supply is solely in the hands of the major marketers. They are therefore solely in charge of procuring and supplying the product to both international and local airlines," the NNPC disclosed.
According to the statement, the industry's current consumption is estimated at about 30,000 to 45,0000 metric tonnes (mt) per month, for both low and high peak periods.
The NNPC explained that the ATK supply arrangement is such that the major marketers conduct monthly bids for the supply of the products to the aviation industry.
The statement reads: "For the month of October, the supply did not materialise. Conoil Plc won the bid to supply 30,000mt of ATK to be delivered in two lots of 15,000 mts each. The first lot was to be delivered between 11th and 12th October 2004. Unfortunately, Conoil Plc failed in its commitment to meet these delivery periods, thus putting the industry in jeopardy".
The NNPC explained further that an emergency tender was conducted to mitigate the problem.
"AP Plc won the bid but could not perform due to the emergency condition under which it has to perform," the corporation added.
It disclosed that Oando Plc saved the situation by supplying about 7,500mt adding that by the time the succour came, the scarcity had worsened.
NNPC said the major marketers had gone ahead to place order for about 15,000 mts, which is expected to arrive in the country before the end of this week.
"Starting from November 1, 2004, the majors have made adequate plans to take delivery of 15,000 mts of ATK every 10 days right up to the end of the year," it added.
Ajuonuma said that the "NNPC had to make alternative arrangements to ensure the supply of aviation fuel to the airlines".
He said the corporation apologised to the travelling public for the inconveniences experienced during the period.
According to him, the deregulation process is alive and well and remains the only avenue to guarantee a steady, uninterrupted supply of petroleum products.
The statement added: "The current arrangements put in place by both the NNPC and the major marketers will ensure the realisation of the policy."
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