How profiteering by NNPC’s DSDP contractors landed Nigeria in dirty fuel saga

There are strong indications that excessive and unfair profit seeking practice by some contractors handling Nigeria National Petroleum Corporation (NNPC) Limited crude-for-fuel swap contracts may be the reason off-spec petroleum product made its way into Nigeria.

In May last year, NNPC had picked 16 consortia under a Direct Sale, Direct Purchase (DSDP) contract to receive crude, refine it and in turn import petroleum products into Nigeria to meet the demand for Premium Motor Spirit (PMS), jet fuel and diesel. To comply with local content standards, international partners were merged with Nigeria companies under the DSDP arrangement.

But last week, the deal backfired with the importation of methanol blended PMS by about five different consortia under the deal. Methanol (alcohol) although used by some countries in blending low-level fuel, was never part of the approved PMS specification for Nigeria.

PMS imported into the country is expected to be unleaded with specific gravity 60°/60F standing a limit of 0.757-0,77 max; distillation range (oC) was expected at a limit of 35-205; 10 per cent evaporated (OC) is capped at 70 max; 50 per cent evaporated was 125 max; 100 per cent evaporated (OC) was expected at 180 max; FBP evaporated (OC) was limited to 205 max while residue per cent volume was capped at two max.

Additionally, the odour was put at merchantable, colour put as orange like and total Sulphur was capped by the Standards Organisation of Nigeria in 2017 at 150PPM. Other properties included copper corrosion, ratio: T36°C of 68 max; existent gum (mg/100ml) of four max; oxidation stability (min.) was put at 360 minutes; knock rating (RON) at 90 minutes and RVP (Vapour pressure) (psi) at 90 max. (Guardian)

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