Aiteo Group pays $202 million to NNPC for under-delivered crude oil

March 28, 2017 | Expenditures & Funding, Nigeria, Terminals & Storage

Lagos, Nigeria | – The Nigerian National Petroleum Corporation (NNPC), Monday, disclosed that it had reached a final settlement with Aiteo Group, stating that the company had paid all its outstanding indebtedness amounting to $202.345 million for crude oil swap under-deliveries and other downstream liabilities.

In a statement by its Group General Manger, Group Public Affairs Division, Mr. Ndu Ughamadu, the NNPC stated that the amount includes Aiteo’s share of the $184 million total indebtedness by three companies on crude swap obligations plus Aiteo’s other downstream liabilities.

The other two companies are Televaras Group of Companies and Ontario Oil & Gas Limited.

Ughamadu noted that following its engagement with the NNPC on the issue, Aiteo Group had demonstrated cooperation and commitment towards a successful recovery process.

He said, “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 $202.34 million.”

In addition, Ughamadu noted that Televaras has pledged to make a tranche payment of $17.2 million to the NNPC, while it is still engaging Ontario Oil and Gas Limited for mutual settlement.

He said the NNPC would continue to provide further update on the recovery process for the crude oil swap under deliveries.

According to him, in line with the ongoing reforms in the industry, the Management of the Corporation under the leadership of Dr. Maikanti Baru is committed to ensuring transparency and adequate public information on the ongoing recovery effort.

The NNPC had last week vowed to recover over $184 million in product under-deliveries recorded against the three oil companies in the course of reconciliation of transactions executed during the defunct crude for product swap regime.

Group Managing Director of the NNPC, Mr. Maikanti Baru, had noted that the ongoing recovery process was geared towards ensuring probity and accountability in the operations of the Corporation in line with current reforms in the industry.