Dr. Ifeanyi Ubah, Chairman of Capital Oil & Gas Limited has denied owing the Nigerian National Petroleum Corporation (NNPC) N11billion.

He told the House of Representatives Committee on Petroleum Resources (Downstream) that: “The throughput contract which is what we operate with NNPC puts us in a position of a stock manager which is somewhat the vessel   akin to an oil bank. This allows for commingling and loading out of products so long as we ensure that all parties having products in our storage ultimately receive their total stock.”

“The NNPC in the past had also borrowed products from us to keep their supply and distribution chain running. NNPC for example claimed we owe N11billion but failed to reveal that they owe us N16 billion with a key portion of the debt spanning over two years.”

“My company hadn’t denied that it had in stock products belonging to the NNPC, but the national oil company of failed to conduct a reconciliation with the management of Capital Oil before rushing to make the allegation of theft public. The contract my firm had with the NNPC didn’t contain any clause for the payment for products in my tank farm in cash in the event the NNPC needs its products but provides for a two week notice for Capital Oil to be informed to replace the volume of products to meet any shortfall.”

“We duly paid for product from NNPC and were issued loading permit. However, NNPC diverted the vessel that was supposed to deliver the product and has till date refused to deliver the product, thereby causing a break in the chain of product flow that would have plugged any gap.”

“The unprofessional way in which the issue was handed led to a run on our company operations thereby destabilizing our business and causing us to shut down our operations. The circumstances have caused us billions of naira in losses ask serious dislocations for our workers.”

“On so many occasions we have loaned millions of liters of petroleum products from our storage to the NNPC group without alerting or alarming the public. We have always kept the confidentiality of our relationship sacrosanct.”

“It is in the light of these indisputable circumstances that we were shocked at and disappointed with the actions of the NNPC in throwing the issue to the public and calling in law enforcement agencies without fully exploring the available dispute resolution mechanism available within the purview of our contractual relationship. However, we have submitted these issues to the jurisdiction of the courts and the relevant law enforcement agencies.”