Retailers propose structured offtake arrangement with 25,000-barrel-per-day refinery as Nigeria seeks to reduce dependence on imported petroleum products.
By Heapnews
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is seeking a direct supply agreement with Azikel Refinery in Bayelsa State to improve the availability and distribution of locally refined petroleum products.
PETROAN President Billy Gillis-Harry led a delegation of the association’s executives on a visit to the refinery in Obunagha, Yenagoa, on September 29 to explore commercial partnerships with the indigenous refiner.
The proposed arrangement would allow PETROAN members to purchase petroleum products directly from the refinery under mutually agreed commercial, technical and operational terms.
The association said the deal could shorten supply chains, improve product availability and reduce retailers’ exposure to fluctuations in international petroleum markets and foreign exchange.
The visit included discussions on the refinery’s development, planned operations, refining capacity and potential areas of collaboration with petroleum retailers.
Azikel Refinery has expanded its original design capacity of 12,000 barrels per day to 25,000 barrels per day. The facility is designed to produce petrol, automotive gas oil, kerosene, aviation fuel and liquefied petroleum gas.
PETROAN said the refinery had reached an advanced stage of construction and integration following the arrival and installation of its 200-tonne crude distillation unit.
Gillis-Harry said partnerships with indigenous refiners could help Nigeria reduce its dependence on imported petroleum products while building a more reliable domestic supply chain.
He said the association was seeking commercially viable arrangements that would benefit refiners, marketers and consumers.
Azikel Group President and Chief Executive Officer Eruani Azibapu Godbless welcomed the delegation and expressed the refinery’s readiness to establish partnerships with petroleum retailers as it moves towards commercial operations.
Both parties agreed to sustain discussions to address the commercial, technical and operational requirements of the proposed supply arrangement.
PETROAN said its engagement with Azikel was part of a broader strategy to establish partnerships with indigenous refineries and other stakeholders in the downstream petroleum sector.
The association said diversifying domestic supply sources would help strengthen competition and reduce the risks associated with relying heavily on a single supplier.