Emadeb, Hyde, Ay Maikifi consortium has absolved itself of responsibility for the importation of the bad fuel that entered into the Nigerian market last week and caused havoc.
The Nigerian National Petroleum Company Limited (NNPC) had named the consortium comprising Emadeb, Hyde, Ay Maikifi and Brittania-U as one of the four companies that imported the contaminated Premium Motor Spirit (PMS) also called petrol from Belgium.
In a quick response to the NNPC’s statement, Emadeb, Hyde, Ay Maikifi said Brittania-U solely imported the bad fuel, adding that Brittania-U had left the consortium and operates on its own. NNPC knows this fact as the national oil company was duly communicated, Emadeb, Hyde, Ay Maikifi said.
In its response to NNPC’s claim, Emadeb, Hyde, Ay Maikifi accused NNPC of misleading the public as regards who is responsible for the importation of the contaminated petrol.
It said NNPC’s claim that the Consortium which is made up of Emadeb, Hyde, Ay Maikifi and Brittania-U is responsible for the importation of bad fuel is being economical with the truth.
Contrary to the claims by NNPC, Emadeb, Hyde and Ay Maikifi said NNPC claim contradicts what actually happened as it did not fully reflect or represent the fact.
Emadeb, Hyde and Ay Maikifi stated that it is important to inform the public of the facts and provide clarifications relating to the delivery of the said contaminated PMS to the country.
We also deem it necessary to protect our image as we have invested a lot in building our respective brands in the industry, Emadeb, Hyde and Ay Maikifi said.
According to a release signed by Emadeb Energy Services Limited – the lead of Emadeb, Hyde and Ay Maikifi consortium, Brittania-U Nigeria Limited (Brittania-U) was the sole supplier of the 90,000MT of bad PMS being attributed to Emadeb, Hyde and Ay Maikifi. Brittania-U delivered through a crude oil tanker named MT Torm Hilde with laycan or loading period scheduled for January 2 to 4, 2022.
Emadeb Energy Services Limited further noted that at the formation of the Emadeb, Hyde, Ay Maikifi and Brittania-U Consortium in May 2021 by NNPC, Brittania-U refused to execute the Service and Consortium Agreement submitted to NNPC in fulfillment of the award of the direct supply, direct purchase (DSDP) Contract.
Emadeb as the lead of the Consortium engaged Brittania-U severally on the need to work based on the Service and Consortium Agreement but it refused and insisted on dealing with NNPC independently. NNPC was expressly notified about this by the other Consortium members via a letter dated June 2, 2021, Emadeb said.
Brittania-U vehemently refused to execute the Consortium Agreement with the other Consortium members – EMADEB/HYDE/AY MAIKIFI, which Emadeb said was surprising and frustrating to other members.
Emadeb said Brittania-U communicated all her actions to the other Consortium members and NNPC on its preference to perform a sole contract for crude lifting and PMS supply under the DSDP arrangement.
Brittania-U’s actions and decision include choice to be solely liable under her supplies to NNPC and in the light of which she indemnified the other Consortium members accordingly; non-acceptance of the nominated international partner agreed by other Consortium members – EMADEB/HYDE/AY MAIKIFI; and; its unwillingness to cooperate or share information and documents with the other Consortium members in respect of the December 2021 crude cargo allocated to her by NNPC.
Following the repeated refusal of Brittania-U to work with the other members of the Consortium, Brittania-U indemnified the other consortium members – Emadeb/Hyde/Ay Maikifi – and the resulting agreement was executed by the company on June 16, 2021.
The new agreement with Brittania-U reads in part: “The Indemnity clause contained in the aforementioned agreement covers “Emadeb/Hyde/Ay Maikifi” against all damages, losses, costs, expenses (including reasonable legal costs, expenses and attorneys’ fees) and liabilities incident to claims, demands or causes of action brought by or on behalf of any person or entity, which claims, demands or causes of action arise out of, are incident to or result from the performance of or failure to perform the Project. The indemnity also covers shortages in delivery of products, late deliveries, delivery of off-spec cargo or other wrongful performance of their obligations in the DSDP agreement.”
EMADEB/HYDE/AY MAIKIFI via a letter dated December 10, 2021 informed NNPC of non-receipt of information from Brittania-U on all correspondence relating to the DSDP crude cargo allocated to them. We further stated that Brittania-U’s action contradicts all efforts to ensure performance on her allotted crude cargo.
In view of the notice of the contaminated product, EMADEB/HYDE/AY MAIKIFI immediately notified Brittania-U via a letter dated February 3, 2022 and also expressly informed NNPC of the sole liability of Brittania U.
Based on the substantial evidence provided to NNPC and several declarations by Brittania-U to NNPC, Brittania-U is, therefore, solely liable for the supply of the PMS via MT Torm Hilde. This is also demonstrated by Brittania-U’s unwillingness to be part of the consortium; however, all the other parties were duly indemnified by Brittania-U.
Emadeb Energy Services Limited further explained that other Consortium members – EMADEB/HYDE/AY MAIKIFI had performed and delivered 270,000MT of PMS in the last five months and they were certified by the NNPC-nominated inspector without any complaint or adverse issues.
Out of the 270,000MT of PMS, 90,000MT is currently discharging via crude tanker, MT Fair Seas, offshore Lagos. All records showing our performance are available with NNPC for verification and validation.
EMADEB/HYDE/AY MAIKIFI will continue to work with NNPC and perform creditably on all our obligations. As reputable companies, we will not associate ourselves with any activity that will be to the detriment of the citizens of Nigeria.
EMADEB/HYDE/AY MAIKIFI believe these stated positions of ours have demonstrated that we are not the suppliers of the said contaminated PMS. We are ready to give our full and maximum cooperation to any government investigation panel and or any agency with all the relevant documentation and or information that may be required.
“We implore all our customers to continue to patronize all services provided by Emadeb/HYDE and AY Maikifi” Emadeb Energy Services Limited said.
