Crude swap racket: NNPC recoups $202m from AITEO

The Nigerian National Petroleum Corporation (NNPC) has recouped $202 million as outstanding payment on crude for product swap from Aiteo Group.

The corporation, which confirmed this yesterday, stated that it would continue to go public on recovery process for product under-deliveries in the $184 million crude swap racket, which rocked the corporation up till August 2014 when the crude swap contracts were cancelled.

Stating that the rigorous recovery efforts were in line with the ongoing reforms in the industry, the NNPC, in a statement by its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, said that Dr. Maikanti Baru’s leadership was committed to ensuring transparency and adequate public information on the ongoing recovery effort.

“In line with its pledge to provide members of the public with periodic updates on its recovery efforts for crude swap under deliveries, the NNPC is pleased to confirm that it has now reached a final settlement with AITEO Group.

“Following extensive reconciliation between both parties across their business transactions and subsequent agreement by the parties therefrom, the Corporation wishes to state that AITEO Group has paid in full all its outstanding indebtedness to our downstream entities amounting to $202,344,838.62,” the statement read.

The amount, the NNPC said, “includes AITEO’s share of the $184 million total indebtedness by three companies on crude swap obligations plus AITEO’s other downstream liabilities.” Aside AITEO, two other companies, it continued, are involved in the crude swap under deliveries. They are: Televaras Group of Companies and Ontario Oil Gas Ltd.

It would be recalled that following its engagement with the NNPC on the issue, AITEO Group has demonstrated cooperation and commitment towards a successful recovery process.

“Already, Televaras has pledged to make a tranche payment of $17.2 million. However, the NNPC is still engaging Ontario Oil & Gas Limited for mutual settlement. “The corporation shall continue to provide further update on the recovery process,” the statement read.

Related posts

Leave a Reply