Yemisi Izuora
AITEO an indigenous oil and gas company which participated in
in both the SWAP crude oil-for-refined-products-exchange programme and Offshore Processing Agreement (OPA) has denied allegations of wrong doing.
The company is also going to reconcile 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.
In a letter dated 9th June 2015,the NNPC had advised AITEO to schedule a reconciliation meeting with PPMC during which it intends to reconcile the full OPA position to determine over-deliveries and under-deliveries as it relates to each party.
AITEO’s spokesperson Aiki Odiawa at the weekend explained 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.
“Therefore allegations by Sahara Reporters that AITEO “apparently gulped down $150million” are not only baseless but also aimed to slur the name of the company.
“Further allegations by Sahara Reporters that by late March, AITEO was more than 20 cargoes in arrears on the new deal are completely false. In fulfilment of our outstanding obligation on the Duke Oil SWAP and contracts, we have decided to nominate two cargo deliveries to fully liquidate any outstanding deliveries due to PPMC.
However, Should there still exist a deficit after reconciling positions, where there is an over delivery, PPMC will issue a credit note in favour of AITEO and if AITEO should have any outstanding this will either be deducted from on-going cash calls due AITEO from AITEO/NNPC joint venture or an outright remittance as the case may be” she explained.
She also informed that the Board of AITEO has taken the decision to wind down this Duke Oil SWAP and OPA contract promptly and bring its business relationship with Duke Oil to a closure.
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”.