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Products Supply: IPMAN Signs MoU with Capital Oil

By on March 26, 2011

Independent Petroleum Marketers Association of Nigeria (IPMAN) has signed a Memorandum of Understanding (MoU) with Capital Oil and Gas Industries, a leading player in the Nigerian downstream petroleum industry for supply and distribution of petroleum products.

The partnership  is to ensure even distribution of petroleum products across the country, with a view to crashing the price of Dual Purpose Kerosene (DPK), which currently stands at N110 a litre.

The MoU was signed by IPMAN National President, Alhaji Musa Felande Mohammed and the National Secretary, Barrister Gani Dibu Aderibigbe and 14 other executives of the association and the Managing Director of Capital Oil, Mr. Patrick Ifeanyi Ubah and the company Secretary/Legal Adviser, Oranuba George U. Esq. Speaking at the signing ceremony, the IPMAN National President said the choice of Capital Oil as the group’s major source of supply of Premium Motor Spirit (PMS), DPK and Automotive Gas Oil (AGO) was informed by current constraints faced by IPMAN members in accessing petroleum products at depots for loading and distribution to consumers in parts of the country.

Besides, he said IPMAN members were not satisfied with the services they get from the Nigerian Independent Petroleum Company (NIPCO), as according to him,
most of their products stored at NIPCO depot do not get to IPMAN members. While alleging that the NIPCO, which originally was a member of IPMAN had been hijacked by some foreigners and a few IPMAN members, Mohammed said the partnership with Capital Oil would ensure that products get to end users and at government approved prices.

He said with the signing, IPMAN will now stop allocation of its products to NIPCO as it will ensure that the Nigerian National Petroleum Corporation (NNPC) and the Petroleum Products Pricing Regulatory Agency (PPRA) channel all its allocation and loadings to Capital Oil.

He said: “the essence of the MoU is to enable regular supply of petroleum products to our members so as to boost distribution of petroleum products throughout the country and to encourage indigenous entrepreneurs. The choice of Capital Oil was made by IPMAN due to the company’s exceptional capacity and competence in meeting the needs of IPMAN members national-wide.

The company has jetty facility capable of docking four large vessels simultaneously, storage capacity of 196 million litres of petroleum products, 30 arm loading facility capable of loading out 56 million litres per day, truck park facility with a capacity to accommodate 1,100 trucks, dedicated access and exit roads to the depot and its 24 our service.

“Under the terms of the MoU, both parties agreed that Capital Oil is expected to provide a furnished office accommodation to IPMAN in its depot as well as ensure that all safety standards, regulations and procedures are in place for safe operation. On the other hand, IPMAN is to ensure that its members’ trucks are channel to Capital Oil for loading, as well as ensure that the NNPC and PPPRA
move all IPMAN allocation and loadings to Capital Oil”.

Responding, Ubah pledged his company’s commitment to apply all safety standards and regulation in line with international industry standards in the transaction.

Source : Thisday