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16
February
2022

‘We didn’t see it coming’ — Mele Kyari faces reps, apologises over off-spec PMS

Kyari tendered the apology on Wednesday when he appeared before the house of representatives committee on petroleum downstream.

“We regret this situation. It is completely unavoidable, we didn’t see it coming. We apologise to Nigerians. We didn’t see this coming,” he said.

Last week, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed that petrol, with methanol quantities above Nigeria’s specification, was discovered in the supply chain.

The development led to long queues as many filling stations shut down services.

NNPC had claimed that four marketers, including MRS, Oando, Emadeb Consortium, and Duke Oil, a subsidiary of NNPC imported the off-spec petrol.

Emadeb-led Consortium, MRS and Oando denied the allegation.

Responding to questions from the lawmakers, Kyari reiterated that Nigeria did not test for methanol at the load port and on at arrival by NNPC and the regulatory authority.

He added that the suppliers denied allegations because of liability responsibilities.

“What they (partners) are saying which we have accepted is that: ‘I brought the product that is based on your specification and therefore I did not bring the adulterated product. This is the point they are making,” he said.

“I have also said that we didn’t test for methanol both at the load port and also by the NNPC and the regulatory authority.

“What they are saying is that what I brought met your specification.

“What they probably didn’t know is that it contain methanol and that methanol originated from the loading terminal. It is good to put this in perspective so that Nigerians are aware that what they (partners) are saying is that they have no liability.

“But it nowhere sustainable because we have also filed liquidated damages which they can pass on until it gets to originating depot.

“We are not saying they know, but what we are saying is that the commercial partners of record that we have and it is their duty to transfer these liabilities to the origin of these products.

“We did not know that this product contains methanol. We did not know, and your investigation will give you the reality at the end of the tunnel.”

Kyari said NNPC swiftly quarantined the off-spec PMS all over the country, adding that the situation led to the scarcity of PMS.

“Once you have this situation and you withdraw volumes in the market, you will have supply disruption,” he said.

“We are very conscious of the consequence that will come with it. We have seen the disruption of the economic activities that are very obvious.

“Also, the liquidated damages that can be a legal process that you may never be able to recover your position.”

The NNPC GMD said measures had been put in place to ensure no future reoccurrence of the situation.


Mele Kyari, group managing director of the Nigerian National Petroleum Company (NNPC) Limited, has apologised to Nigerians over the importation of the off-spec PMS.

Kyari tendered the apology on Wednesday when he appeared before the house of representatives committee on petroleum downstream.

“We regret this situation. It is completely unavoidable, we didn’t see it coming. We apologise to Nigerians. We didn’t see this coming,” he said.

Last week, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed that petrol, with methanol quantities above Nigeria’s specification, was discovered in the supply chain.

The development led to long queues as many filling stations shut down services.

NNPC had claimed that four marketers, including MRS, Oando, Emadeb Consortium, and Duke Oil, a subsidiary of NNPC imported the off-spec petrol.

Emadeb-led Consortium, MRS and Oando denied the allegation.

Responding to questions from the lawmakers, Kyari reiterated that Nigeria did not test for methanol at the load port and on at arrival by NNPC and the regulatory authority.

He added that the suppliers denied allegations because of liability responsibilities.

“What they (partners) are saying which we have accepted is that: ‘I brought the product that is based on your specification and therefore I did not bring the adulterated product. This is the point they are making,” he said.

“I have also said that we didn’t test for methanol both at the load port and also by the NNPC and the regulatory authority.

“What they are saying is that what I brought met your specification.

“What they probably didn’t know is that it contain methanol and that methanol originated from the loading terminal. It is good to put this in perspective so that Nigerians are aware that what they (partners) are saying is that they have no liability.

“But it nowhere sustainable because we have also filed liquidated damages which they can pass on until it gets to originating depot.

“We are not saying they know, but what we are saying is that the commercial partners of record that we have and it is their duty to transfer these liabilities to the origin of these products.

“We did not know that this product contains methanol. We did not know, and your investigation will give you the reality at the end of the tunnel.”

Kyari said NNPC swiftly quarantined the off-spec PMS all over the country, adding that the situation led to the scarcity of PMS.

“Once you have this situation and you withdraw volumes in the market, you will have supply disruption,” he said.

“We are very conscious of the consequence that will come with it. We have seen the disruption of the economic activities that are very obvious.

“Also, the liquidated damages that can be a legal process that you may never be able to recover your position.”

The NNPC GMD said measures had been put in place to ensure no future reoccurrence of the situation.

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