Oil marketing authorities reject Nigerian firm's plea

14Jan 2016
The Guardian Reporter
The Guardian
Oil marketing authorities reject Nigerian firm's plea

OIL Marketing Companies rejected a request by Nigerian based Sahara Energy Resources Limited to supply a clean consignment of gasoline (petrol) based on November 2015 world market prices for the commodity.

Energy and Water Utilities Regulatory Authority (Ewura) Director General, Felix Ngamlagos

Sahara which was ordered by Tanzania Bureau of Standards last week to withdraw its oil tanker carrying 37,000 litres of gasoline for failing to meet quality benchmarks, is required to supply a clean consignment of the same within a month.

“Their local representatives had requested OMCs to allow them supply the commodity based on November 2015 global market prices which were higher compared to prevailing prices but it was rejected,” a source who attended the Petroleum Importation Coordinator Limited organized meeting said.
Sahara Energy which won bulk procurement tender last December to supply the country with petroleum products for the month of February 2016, is also likely to face up to six month ban for the offence according to Bulk Procurement Regulations and the Petroleum Act of 2008.

Sahara won the BPS tender last December when world market price for petrol was over US$ 40 but which has since plummeted to US$ 30 as of yesterday.
Last week, TBS Director General, Joseph Masikitiko ordered Sahara to move MT Alexander Ridgebury out of the country’s territorial waters because the commodity aboard had failed quality tests as it was found with huge quantities of lead.

“This fuel will not be allowed into the country and we have informed its owners to leave,” Masikitiko said after TBS conducted a second testing of samples following insistence by the Lagos based company.

PIC which contracted the Nigerian firm to supply fuel is yet to announce punishment to be imposed on the supplier of the substandard fuel which it had tried to lobby authorities to accept since December 25, 2015 when MT Ridgebury arrived at the outer anchorage of Dar es Salaam port.

Energy and Water Utilities Regulatory Authority (Ewura) Director General, Felix Ngamlagosi assured the country of enough fuel stocks to last before the next oil tanker offloads the product at Dar es Salaam port.

“We can assure the public that there is enough fuel in the market and that more fuel will be offloaded at Dar es Salaam port in few days,” Ngamlagosi told a news conference. It was the second time that Sahara won the competitive bulk procurement system tender last year.

Meanwhile Sahara Energy has said its suspension to take part in any oil supply to the Nigerian market after being suspended last December has since been lifted following an appeal.

In a statement, the company said, “For the record, we would like to state that our appeal was upheld, resulting in a clearance letter from the DPR which absolved Sahara and lifted the sanction.”

Nigeria’s Department of Petroleum Resources suspended Sahara’s licence because of selling the product at a higher price against that of regulators.