THE management of the Nigerian National Petroleum Corporation (NNPC) yesterday faulted media report that the corporation was unable to account for 65,000 barrels of crude supply out of the 445,000 barrels allocated to it daily by government at international market price for domestic refining.

In a statement by the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Levi Ajuonuma, it stated that the report was a clear misrepresentation of the presentation made by the Group Managing Director, Egnr. Austen Oniwon at Monday’s session at the ongoing Senate Joint Committee-organised Public Hearing on Subsidy Management and Process .

“We want to emphasize that at no time during his presentation did the GMD state or allude to the fact that 65,000 barrels of crude were missing or unaccounted for. The fact is 65,000 barrels of crude oil per day is so big in the economy of the nation to be toyed with,” Ajuonuma stated.

Providing a breakdown of how the crude is utilized, Ajuonuma explained that what the GMD said under oath which was also captured on live television is as simple as follows:

“NNPC buys 445,000 barrels per day from government at prevailing international market price. Out of this figure, Port Harcourt Refinery gets 90,000 barrels per day, Warri Refinery receives 80,000 barrels.

Also under the Crude for Product Swap arrangements, Societe Ivoirienne De Refinnage (SIR), receives 60,000 barrels, Duke Oil, a wholly owned subsidiary of the NNPC receives 90,000 barrels and Trafigura gets 60,000 barrels per day.

“The balance of 65,000 barrels meant for Kaduna Refinery is sold to meet up with commitments since Kaduna Refinery has since been shut down due to vandalization of crude supply pipeline at Egwa village in Warri South-West Local Government Area of Delta State,” Ajuonuma explained.

He added: “If you take time to do the simple arithmetic, you will discover that nothing is actually missing or unaccounted for.”

The NNPC spokesman remarked that the corporation is comforted by the fact that the senators conducting the public hearing clearly understood the explanation provided by the GMD.

“From the countenance of the distinguished senators, you could see clearly that they had no misgiving about the accuracy of the presentation made by the GMD on how the 445,000 barrels are utilized on a daily basis. There is no way the distinguished senators could have allowed that to pass if they had issues with the content of the full disclosure,” Ajuonuma added.

-Guardian

Posted by admin on Dec 13 2011. Filed under Headlines, Oil Politics. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry