Yemisi Izuora/Joseph Bakare
AITEO, an indigenous oil and gas firm is ending its SWAP and OPA contract deal with Duke Oil and to bring its business relationship with the company to a closure.
AITEO which participated in both the SWAP crude oil-for-refined-products-exchange programme and Offshore Processing Agreement (OPA) has also begun reconciliation of accounts with the Pipeline and Product Marketing Company (PPMC),
The OPA initiative with the Nigeria National Petroleum Corporation (NNPC) which involved other companies requires a reconciliation meeting to take place between the parties on a quarterly basis for all crude oil loaded and refined products delivered.
AITEO’s spokesperson Aiki Odiawa said that the outcome of the fully reconciled position would be determined soon.
Odiawa who was responding to publications alleging the company’s wrong doing in the contract denied any form of fraud in the deal.
According to her, AITEO in collaboration with Duke Oil participated in both the SWAP crude oil-for-refined-products-exchange programme and Offshore Processing Agreement (OPA), which are both governed by robust legally binding agreements with provisions for strict commercial considerations backed by the necessary financial instruments to mitigate and manage potential risks of transactions of this nature.
She further explained that AITEO’s participation in the programmes was premised upon AITEO having fulfilled all requirements precedent to being nominated and gaining the objective confidence of the Management of NNPC on its strong competence and ability to deliver on the said contracts.
“Never at any point has AITEO unfairly exploited its commercial relationship with NNPC under the SWAP or OPA contracts” Odiawa maintained.
Making further clarifications she noted, “With respect to the ongoing investigative exercise being undertake by Department of State Security (DSS) and Economic and Financial Crimes Commission (EFFC), we would like to state clearly that AITEO promptly obliged to all requests for submission of documents and honuoured invitations by government agencies for clarification regarding our participation in the OPA and SWAP programmes”.