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As NEITI Clarifies Report On Crude Swap, Taleveras States Position

Source: pointblanknews.com
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Taleveras, Africa's leading most active supplier of refined petroleum

product in and out of the continent, said it is sadden by the possible

negative impact of recent media misrepresentation of figures against it,

could have on the Structuring Finance for Petroleum Product Supply into

Nigeria.
This is coming on the heels of wrong media interpretation ‎of the

earlier report of Nigerian Extractive Industry Transparency Initiative

(NEITI) that wrongly listed 152,308,878 litres of Gasoline, instead of

52, 308, 878. 00 USD monetary value, which was subsequently clarified by

NEITI.
In a statement, Mr Leonard Kwentua a Senior Trading and Supply Executive

of Taleveras Petroleum said that International Financial Institutions are

very Sensitive to Sensational Media Reports and most recently these

inaccurate Reports do more harm than good in Structuring Finance for

Petroleum Product Supply into Nigeria, which can lead to supply

disruptions.
A Nigerian Daily had on March 25, 2014 wrongly listed 152,308,878 litres

instead of 52,308, 878.00 USD value against Taleveras in the Crude Oil

Swap Arrangement.
But after verification of the NEITI report made available to the press,

the NEITI report had listed 52,308,878.00 in USD Value and not 152, 308,

878 litres as grossly misinterpreted in the Press.

Subsequently, NEITI has refuted an earlier report of USD 8 billion loss.

NEITI's Director of Communication, Dr. Orji Ogbonnaya Orji, while denying

the $8 billion loss states:
“The media report from that presentation attributed to NEITI that the

nation losses $8 billion annually through crude oil Swap. This is not only

wrong but misleading. What NEITI presented and explained at that hearing

was that there is no cost efficiency in the transactions with the offshore

processing organisations.”
Mr Leonard Kwentua maintained that “Taleveras supply of Gasoline under the

swap arrangement are on- going activities and accounts are reconciled

quarterly to determine what is oversupplied or under supplied”.

According to the statement, “This Barter Arrangement is a major factor

responsible for the sustainability of supply and availability of Gasoline

across Nigeria. International Financial Institutions are very Sensitive to

Sensational Media Reports and most recently these inaccurate Reports do

more harm than good in Structuring Finance for Petroleum Product Supply

into Nigeria”.
The firm noted that “Furthermore, It is on record that Taleveras is one of

the most active supplier of Refined Petroleum Products in and out of

Africa as a whole and in particular PPMC under the Duke/Taleveras

arrangement, we are often than not, used as a Performance Example”.

Mr Leonard Kwentua added that “Secondly, for the Swap Transaction, there

is an underlying security in form of a standby letter of credit in Favour

of PPMC, so if you don't deliver the products, PPMC are in a position to

cash any defaulter's Letter of Credit, these letters of credits are issued

in favour of PPMC by first Class Banks and must be Bank Confirmed Prior to

an Offtake of the Crude, so in essence NO Letter of Credit , NO Lifting of

Crude”.
“As an Example: NEITI report showing 2011 under delivery of about USD 52

Million in their Table, does not reflect the actual sum, as Inventory

warehousing cost is not applied to this figure. Balance on account of this

on- going term deal is fully secured, at all times, due to the fact there

is an underlying security, always in place, by way of an active Bank

issued letter of credit, which in this instance stood at 200 Mil USD in

favour of PPMC during the period stated. As at December 2013, the Balance

on account shows Taleveras has over supplied in its Delivery obligations,

subject to reconciliation with PPMC”, he stated.
He insisted that “There has always been an issue when Indigenous Companies

are empowered or encourage to partake in a business that has had

International Dominance for several Years, these Swaps and Offshore

Processing Arrangements have been done in Nigeria Many Years ago and

dominated by International Oil Companies, in more Recent Times, we have

seen British Petroleum Plc, Operate through a Subsidiary an Offshore

Processing Agreement in Nigeria with NNPC/PPMC, there was never any

backlash as we have seen now, Nigerian Companies should be encouraged as

we Strengthen Our Economy by the size these activities bring to our

Balance sheet, which in turn gives us an opportunity to enlist the

confidence of Local and International Financial institutions, as we strive

to Diversify our portfolios to other sectors of the economy, that needs

development, this undoubtedly leads to More Employment opportunities for

Nigerians. Never before have we seen the Growth of Nigerian Companies in

the Oil and Gas Sector in Africa, where business activities are

increasingly done under International Best Practice. Taleveras has nowhere

to go this is Our Country”.
Taleveras, Mr Kwentua noted, “is made up of Young Enterprising Nigerians,

the Journey for us spans over 13 Years of active and gradual growth,

conducting our various Business activities Diligently and Professionally,

we employ a great number of Skilled and Unskilled Dynamic Nigerians, we

have Built a strong Brand that has attracted serious International

Recognition doing Business in Various parts of the world and with Top

Class Counterparts, so we Take our Reputation and Perceptions Seriously”.