NNPC Bans 113 Vessels From Oil Transactions | Independent Newspapers Limited
Newsletter subscribe


NNPC Bans 113 Vessels From Oil Transactions

Posted: Jul 20, 2015 at 1:49 am   /   by   /   comments (0)

Oladunjoye Phillip  With agency reports

The Nigerian National Petroleum Corporation (NNPC) has banned 113 oil vessels from entering Nigerian oil facilities and territorial waters due to alleged sharp practices.

According to information obtained from Platts, a global energy trading information outfit, the document banning the vessels was signed by the group general manager of NNPC’s crude oil marketing division, Gbenga O. Komolafe.

It said the letter was dated July 15 and was addressed to terminal operators in Nigeria, while the names of the the tankers were listed in an attached spreadsheet.

The document, it noted, stated that NNPC has prohibited 113 tankers “from engaging in crude oil/gas loading activities in any of the terminals within the Nigerian territorial waters until further notice.”

“The affected vessels have also been barred from movements within the Nigerian territorial waters forthwith. Finally, enforcement of the above directives takes immediate effect pending a notice to the contrary by Government, please,” the letter stated.

The report quoted an active buyer and seller of Nigerian crude oil as saying that, “We have been informed about (the ban) and it seems terminal operators will have to take that into account.”

It also noted that shipping and trading sources said the NNPC’s grievance with the shipping companies stems from issues surrounding outturns figures related to the crude oil exports at the port of discharge, adding that sources said there had been a few incidents between Nigerian authorities and their crude oil buyers on differences between the volume of crude that was discharged, compared to the volume on the bill of lading.

“We hear it is about the outturn figures, as there are sometimes differences between the loading and discharge figures, especially with certain countries,” said a trader active in the West African crude oil market.

“We are currently gathering information,” said a source with a shipowner that would be impacted by the potential ban.

“A lot of market players have received the document and we have to take it seriously. The NNPC are asking for outturn figures but the receivers of the cargoes have this information, not the shipowners. They need to approach the cargo receivers, not the vessel owners,” he added.