The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and Azikel Refinery have moved to deepen domestic fuel supply and reduce Nigeria’s dependence on imported petroleum products through a proposed direct-offtake arrangement for retailers.
The initiative followed a strategic engagement led by PETROAN National President, Dr Billy Gillis-Harry, at the Azikel Refinery in Obunagha, Yenagoa, Bayelsa State, where both parties discussed the commercial, technical and operational framework for direct supply of locally refined products to PETROAN members.
The arrangement is expected to shorten supply chains, give the refinery an aggregated market for its products and provide retailers with a more dependable source of supply.
The association said the direct supply framework is aimed at improving the availability and reliability of locally refined petroleum products while reducing the long supply chains, intermediaries and costs associated with the distribution of products in the downstream sector.
According to PETROAN, the arrangement would give the refinery a predictable and aggregated market for its products, while providing retailers with a more dependable source of supply less exposed to international market and foreign exchange volatility.
The association said the discussions focused on the commercial, technical and operational terms required to establish a sustainable offtake partnership between the refinery and its members.
According to Gillis-Harry, PETROAN was committed to developing practical partnerships with indigenous refiners to strengthen domestic supply chains.
He said: “As retailers, we want to build practical partnerships with indigenous refineries that can improve product availability, strengthen supply chains and create greater certainty for businesses and consumers.”
Gillis-Harry added that the association’s objective was not merely to secure supplies for its members but to establish enduring commercial relationships that would be beneficial to both refiners and marketers.
In a statement signed by its National PRO, Dr Joseph Obele and Chairman, Investment and Insurance Directorate, Dr Donald Peterson, on Tuesday, PETROAN said its engagement with Azikel formed part of a broader strategy to deepen collaboration with indigenous refiners and other stakeholders across the downstream petroleum value chain.
The association said expanding the number of reliable domestic sources of petroleum products would promote competition, strengthen supply security and reduce the sector’s exposure to external shocks.
It maintained that Nigeria’s refining future should be built around multiple reliable sources of supply and transparent market participation rather than dependence on any single supplier.
The Azikel Refinery, which has been re-engineered from its original 12,000 barrels-per-day design capacity to a 25,000 barrels-per-day full-slate hydro-skimming facility, is configured to process crude oil and condensate into Premium Motor Spirit, Automotive Gas Oil, kerosene, Aviation Turbine Fuel and Liquefied Petroleum Gas.
Recent reports indicate that the project has reached an advanced stage of construction and integration following the arrival and installation of its 200-tonne Crude Distillation Unit.
Responding, the President and Chief Executive Officer of Azikel Group, Dr Eruani Godbless, expressed the refinery’s readiness to establish strategic relationships with petroleum products retailers as the facility advances towards commercial operations.
Godbless stressed the importance of collaboration between refiners and retail outlet owners in ensuring efficient distribution and securing market access for locally refined products.
Both parties agreed to sustain discussions on the commercial, technical and operational requirements for the proposed offtake partnership.
