Ontario: We Have Supplied all Fuel Cargoes to NNPC

An oil and gas firm, Ontario Oil & Gas Limited has provided clarification on its involvement in the crude for petroleum products exchange agreement, better known as crude oil swaps, with the Nigerian National Petroleum Corporation (NNPC), stating that it has not been indicted for fraud in the ongoing investigation by the Economic and Financial Crimes Commission (EFCC) and/or the Department of State Security (DSS) over its crude swap contract.

Reacting to THISDAY’s report on Sunday on the probe being undertaken by the DSS into the swaps and offshore processing agreements (OPAs) entered into between NNPC and Nigerian oil traders, the company, in a statement, added that it was never invited by DSS, nor had it made a confessional statement to the security agency committing to refund between $800 million and $1.2 billion to NNPC or the federal government.

“While we cannot verify if such an investigation is indeed underway or whether or not security agencies have been able to secure confessions of illegal activity by some marketers, we wish to state, with all sense of responsibility, that our company was never indicted by the EFCC or the DSS in connection with this matter.

“We were therefore shocked and embarrassed to read that the DSS may have also secured confessions from Ontario for between $800 million and $1.2 billion which it hopes to recover in the next few weeks,” it said.

Ontario noted that for sometime, its management has been aware of surreptitious efforts by some persons who, “out of envy for the progress made by our company”, are eager to spread malicious and concocted rumours of our alleged non-delivery of cargo and outstanding payments to the government (NNPC/PPMC).

“It is unfortunate that these people will rather pull down other companies to satisfy their own selfish interests and pursuits.

“For the avoidance of doubt, Ontario Oil & Gas Limited. is one of the indigenous players in the downstream sector of the oil and gas industry whose reputation for probity and accountability is unassailable.

“Indeed, it was owing to this impressive track record in service delivery that we came to sign a crude swap contract with NNPC in February 2011,” it stated.

It disclosed that Ontario lifted 47 crude cargoes and corresponding refined products have been supplied against every single crude cargo lifted.

“In other words, Ontario has supplied all refined products expected in performance of the said contract. In fact, every such transaction was fully backed by reputable financial instruments.

“Moreover, for all supplies of refined product met, PPMC had obliged Ontario with release letters discharging us from all obligations on crude lifted. We make bold to say that Ontario is the only fully owned Nigerian company which has fully performed its obligations under the crude swap contract without any outstanding cargo whatsoever.

“We therefore cannot overstate the fact that at no time whatsoever was Ontario or any of its officials, as at going to press, invited to the DSS for any enquiry, so a confessionary statement could not have been obtained from us.

“We have had no contact whatsoever with the DSS staff referred to in the story and no such figures are outstanding from Ontario,” it said.

It confirmed, however, that at some point the EFCC had invited Ontario amongst other contractees of the swap programme, “and we honoured the invitation and Ontario stated its position backed with cargo delivery documents/presentation spreadsheet of all cargoes delivered when we met with to the commission”.

“Besides, anybody familiar with the operations of the oil industry will understand that at the end of every quarter transaction, reconciliations are usually made by stakeholders to see where gaps/differences exist either in cargo discharge/out turn quantities, penalties for late deliveries/deeming costs, demurrage or NPA port charges, etc.

This has been the practice for so many years and there is nothing unusual about this. It is unfortunate that some people have now decided to capitalise their own ignorance of the technical/process dynamics of the swap contracts to misinform Nigerians regarding this practice and to spread vicious rumours against our company.

“The contract is governed by very strict checks and balances and every crude cargo lifted is secured by a standby Letter of Credit which guarantees the safety of Nigerian’s interest.

“We acknowledge that Ontario as a law abiding and responsible organisation owes a duty to our stakeholders, customers and business partners to clarify this malicious scheming by some people and hope that this will serve the purpose of vindicating our position on this matter,” the company said.

Ontario maintained that it is poised to continue to deliver excellent service to Nigerians, noting it has built a solid reputation as a company with great integrity.

“Our track record of decent business practices and strict obedience to processes is there for all to see. We cannot allow anyone to tarnish that hard-won image.

“We are a wholly indigenous company employing hundreds of Nigerians whose livelihoods and those of their families and dependants depend on us.

“It is sad that anyone will consider us fair game for a campaign of calumny designed to destroy our organisation. Even more perplexing is the extent these people are willing to go to achieve their purpose.

“We however wish to advise them that the sky is big enough to accommodate all players,” it stated.

Ontario: We Have Supplied all Fuel Cargoes to NNPC