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Independent oil marketers pull out from NIPCO

By on March 26, 2011

The Independent Petroleum Products Marketers Association of Nigeria (IPMAN) yesterday in Lagos formally pulled out from its jointly owned company, Nigerian Independent Petroleum Company (NIPCO) and signed a memorandum of understanding (MoU) with Capital Oil and Gas Limited.

With the MoU, all petroleum products allocations meant for the independent marketers from the Products and Pipeline Marketing Company (PPMC), a subsidiary of Nigerian National Petroleum Corporation (NNPC) and other transactions with the association, will be channeled through Capital Oil facilities in Lagos.

The association’s national executive members as well as zonal executives from the six geopolitical zones in the country led by the National President, Alhaji Musa Felande Mohammed, were present at the agreement signing meeting.

Mohammed said that the objectives of formation of NIPCO as a company, which include receipt of IPMAN’s allocations and loading of such products for distribution across the country, have failed. He noted that since the Indians took over management of the company, allocations for IPMAN are often diverted and don’t get to the rightful beneficiaries, which also partly causes fuel scarcity. He however, said with the new partnership, “we will be assured of our allocation and there would be increased efficiency in fuel supply.”

Mohammed said: “We have taken tour of Capital Oil facility and can confirm the company is the leader in the downstream in terms of infrastructure and capacity. Necessary arrangements will be made to enable implementation of the agreement start next week.”

The MoU, was signed by 18 officials from IPMAN and Capital Oil management including, IPMAN National President, National Secretary, Gani Dibu Aderibigbe (Barrister) and Managing Director/CEO, Capital Oil and Gas, Mr. Patrick Ifeanyi Ubah and Capital Oil Company Secretary/Legal Adviser, Oranuba George Esq.

The MoU read in part: “In consideration of the ongoing constraints faced by our members in accessing petroleum products at the depots for loading and distribution to consumers in various parts of the country, we, In Independent Petroleum Products Marketers Association of Nigeria (IPMAN) have this day Wednesday, March 23, 2011, signed a memorandum of understanding with a leading indigenous oil firm, Capital Oil and Gas Industries Limited, as our major source for the supply of petroleum products notably, premium motor spirit (PMS), Dual Purpose Kerosene (DPK) and Automotive Gas Oil (AGO).

“The essence of the MoU is to ensure regular and steady supply of petroleum products to our members as to boost the effective distribution of petroleum products throughout the country and to encourage indigenous entrepreneurs. The choice of Capital Oil and Gas Industries Limited was made by IPMAN due to the company’s exceptional capacity competence to meet the needs of IPMAN members nationwide”

IPMAN also said: “We members of IPMAN have seen that the products that were proposed to be for members of IPMAN for efficient energy distribution in the country are not well achieved by NIPCO and the management. The company, which was formed by and for indigenous independent petroleum marketers, has been hijacked by the Indians and two independent marketers. They hijacked the business and divert our allocations such that the products cannot get to the general public and members of IPMAN.

Source :- The Nation