House Demands Details of Oil Consortium Involved in DSDP Arrangement with NNPC

Udora Orizu

The House of Representatives Ad-hoc Committee investigating the daily consumption of Petroleum Motor Spirit (PMS) in the country has demanded details of the oil consortium involved in the Nigerian National Petroleum Company (NNPC) Limited, Direct Sale Direct Purchase (DSDP) arrangement.

The resolution of the lawmakers was sequel to the submissions by the representatives of the consortium at the investigative hearing, chaired by Hon. Abdulkadir Abdullahi.

The consortium which consists of three companies namely; Ashgroup Energy Ltd; Jack Energy Solutions Ltd and Vitol SA, a Switzerland based Company, had entered into the DSDP agreement with the NNPC

The consortium was represented by the Commercial Manager, Ashgroup Energy Ltd, Nazifi Alhassan and Murtala Baloni, Head, Public Affairs, Mansel Commercial Company, an affiliate Company linked to Vitol SA.

The DSDP agreement was a scheme introduced by the NNPC Ltd in which oil companies lift crude oil and bring in same value in refined products into the country.

But members of the Committee were not satisfied with the explanation given by Baloni about the involvement of the consortium and the role of Mansel in the scheme.

A member, Hon. Nkem Abonta (PDP, Abia) while objecting to the operations of a foreign company that failed to avail the committee with information on a transaction in Nigerian crude, said the consortium needed to be further scrutinised regarding the DSDP arrangement.

He chided Vitol SA over the letter sent to the Committee requesting that the National Assembly should write their request through the Swiss Embassy to get the records.

Making reference to a similar request by the Senate, the Company stated that, the communication went through the same channel and all the required information was provided to the Senate Committee.

As stated in the letter, the representative of the Company emphasised that Vitol SA would run afoul of a particular Swiss law if it divulges the information without the consent of Swiss authorities.

Baloni reiterated that the company was ready to provide all the necessary information regarding the DSDP arrangement with the NNPC.

However, angered by the response, Abonta said the partners in Nigeria, particularly Mansel should be invited to explain.

To this end, Chairman of the Committee, directed the Clerk to write a letter inviting the Managing Director (MD) of Mansel Commercial Company Ltd to appear before the Committee next week Tuesday.

In similar vein, the Committee also directed Oando Plc to avail it with details of crude lifting, importation of refined products and other information as regards the DSDP arrangement.

Head, Business Development, Oando Trading, Otaru Danjuma, who came with a brief summary of the firm’s activities relating to PMS supplies and subsidy claims, requested for more time to put the documents requested by the committee.

Danjuma noted that Oando is a stand-alone firm under the DSDP and became part of the scheme in 2016.

He said in part, “As a stand-alone company, when the allocations come out from NNPC, a request is made for us to deliver a cargo of products. The volumes differ.

“The dates differ. However, the crude is allocated as against the value of that product we have supplied. And what NNPC does sometimes is that NNPC releases an allocation, the allocation is valued and you requested to bring back PMS of that value and we reconcile. We reconcile on a quarterly basis.”