Capital Oil and Gas Industries Limited has reacted to the allegation that it was withholding 100 million litres of petrol belonging to the corporation saying that NNPC was owing it millions of dollars in a subsisting contract.

In a rejoinder to the allegation issued by the Management of Capial Oil and Gas at the weekend, the company stated: “Our attention has been drawn to a press release by the Public affairs Department of the Nigerian National Petroleum corporation (NNPC) as well as some online publications alleging their inability to access over 100 million litres of petrol stored in our depot. NNPC has a subsisting contract with our company which is on throughput basis.  The corporation has consistently been in breach and default of our contractual agreement by owing us money for services rendered.  Payments from NNPC for services rendered by our company has consistently been delayed for periods spanning over one year and remains unpaid till date.  Currently, NNPC owes us for services rendered to the corporation at very critical periods to salvage nationwide fuel scarcity since 2015 (more than two years now) amounting to millions of Dollars and billions of Naira.”

According to the company, “the corporation had failed to deliver products to us which were duly paid for.  It is instructive to note, that Capital Oil and Gas had trucked out over 7 billion litres of petroleum products for the NNPC over the last few years making us their biggest partner in the downstream secretor of Nigeria’s Oil and gas industry.”

It stated further that it had “written the NNPC severally, requesting for our outstanding payments and delivery of products duly paid for by us.  Rather than honour our request, we are shocked that the Corporation had resorted to this needless campaign of calumny while refusing to make payments and deliver our products to us till date.  We respect the fact that NNPC if our biggest partner in the downstream sector and we have always stood by the Corporation especially in times of national emergencies (product scarcity).  We have proudly rendered intervention services at all critical times in the life of our nation.  It is on record that few months ago, when the same NNPC had s serious break in its supply chain and in a bid    to avert an imminent national scarcity, Capital Oil & Gas Industries Limited lent the Corporation millions of product to close the gap.

The company expressed the hope that the Corporation will respect its contract with them by paying all outstanding bills as well as deliver cargoes which  had been paid for by them in order to end the situation which they viewed as a deliberate  attempt to stifle and strangulate their business, adding that despite their (NNPC) unfair and unfavourable treatment, they still manage to retain thousands of employees in this critical period in the nation’s economy, where even banks and multinationals are retrenching.

“This act of strangulation has been reported  by our  company to the Nigerian Senate  in a petition against the NNPC that was read on the floor of the Senate on Wednesday, 8th of March 2017.  A similar petition was also submitted to the Economic and Financial Crimes Commission (EFCC) as well as the Department of State Services (DSS).

As a responsible corporate citizen, we look forward to the NNPC not only honouring the payment terms of our  contract, but to also deliver the parcel of cargo duly paid for by us and thereafter  reconcile our accounts,” it added.


Please enter your comment!
Please enter your name here