The Managing Director of PPMC has given the go ahead to the Warri refinery officials to shut down the refinery for about three weeks now and still counting because the LPFO that was produced in the refinery and subsequently allocated and sold to Vitol has not been evacuated and this has resulted into a huge loss to the government and Nigerians who are expecting constant and none stop petroleum products from the refinery, We find it difficult to understand why PPMC is covering up for Vitol at the expense of Federal government and the Nigerian people.
Referring to the shuttling vessels chartered by Vitol, M/T Leon Herc and M/T Tapti, I would like to bring to the attention of the GMD NNPC and the presidency the following:
The vessel Vitol chartered, M/T Tapti (IMO 91180560), her last AIS position was on 13/08/2015 departing Fortaleza in Brazil, underway. As you can understand, Vitol chartered a vessel that was in Brazil to come to Nigeria, when there are many other suitable and experienced vessels with the same tonnage owned by Nigrians and trading within Nigeria for many years. M/T Tapti was meant to arrive escravos on August 16, but uptill August 19, the vessel is no show and PPMC will rather have the refinery shut down instead of de-programming the vessel and ask Vitol for a prompt subsitute when their are idle experienced local vessel in Nigeria. Maybe the MD of PPMC thinks its still business as usual.
This decision insinuates and constitues at the same time a serious economic scandal from the part of Vitol at the burden of the Nigerian shipping industry, by chartering a vessel that was trading outside Nigeria, instead of chartering vessel which is available spot prompt and trading continously in Warri, vessels known to Warri refinery, vessels interacting/supporting local suppliers, agents etc.
To even make matters worse to the above and depicting the serious foul play of Vitol is that MT Tapti LOA (length overall) is 183meters. This instantaneously means that the vessel does not comply with NNPC safety rules and restrictions for LPFO loading berth for vessels over 150 mts.
As you may well know, NNPC/PPMC has strict restrictions to use vessels at loading berth of LPFO with maximum LOA (length overall) of 150meters and even after exceptions, maximum 158 meters. This is for safety reasons, in order to avoid problems or damages with the loading arms. Also to avoid any damages during the manoeuvring of other vessels or blockages to the Warri refinery this could result to the complete closure of the channel and hinder the operation of the refinery. The GMD should ask head of PPMC who and why was such a vessel that did not comply with restrictions of the refinery got approval and programmed to load from Warri refinery.
There are vessels, which is a designated Warri carrier, fully complies with the NNPC restrictions and is at all respects suitable to trade within Warri refinery, in accordance with the LOA restrictions of the NNPC.
Vitol will use local vessels to secure PPMC loading programme but only to drop the vessel for other foreign vessels when they have been programmed to load.
Local vessels that are trading for many years in Nigeria, respecting all the local rules and regulations of the authorities, we cannot understand how the new government, which is determined to fight corruption to the bone, allows Vitol to act so conspicuously and succeeding in taking approvals for a vessel of 183 meters which does not comply with the present government’s policy. This can only mean money under the table for certain governmental offices/authorities, which in that way continues the practices of the previous government, when Vitol was notorious for taking out of Nigeria allocations without the proper documentation.
The GMD should kindly explain to PPMC that they have to follow their rules and restrictions which they imposed for the safety of their refineries and all trading vessels with Nigerian waters. If they want to refute the above and avert any negative impact that could be caused from their decision, they have to decline M/T Tapti.
If they do not accept local vessels, since Vitol is taking out local businesses, Local ship owners have no other alternative than to fight till the end with every available means. Presently local ship owners are preparing a file on Vitol crude oil allocations which were exported without proper documentation on VLCCS and million barrels in the past few years. They have promised to bring everything to the attention of the highest ranks of the government and they will take all necessary actions to fight this scandalous decision.
Further to Vitol antics which brought about a foreign vessel from Brazil (MT. Tapti) to Warri refinery to load LPFO at the expense of local vessels, the said Mt. Tapti became a disaster when she eventually berthed at Warri refinery and fully loaded with LPFO, below is the time line for the operation and why Mt Tapti is dangerously not suitable for shipping activities within Nigeria coastal water:
VESSEL (Mt. Tapti) NOT SUITABLE UNDER THE FOLLOWING:
-Excess LOA of 183mtrs as against the required 160mtrs max at Warri refinery
-During berthing at the refinery the vessel has a complete black out and out of command and also breaks the loading on the intervention of the tugboat that saved the situation.
-For loading to re-commence she could not be de ballast and as a result she dangerously drift along the jetty and almost capsized. Shore personnel couldn’t not even board the ship wearing life jacket.
-Vessel loaded the designated quantity of cargo eventually and she immediately and dangerously grounded.
-Portable electric cargo pump was supplied which is very dangerous for vessel because she couldn’t not ballast, because all her pumps are not working hence she couldn’t pump the cargo unto another vessel.
-Vessel was under tow to bennet Island and vessel is still there trying to de ballast
And as a result the refinery is still shut down for 3 weeks running because Vitol has not been able to evacuate the assigned 50kt LPFO hence refinery cannot produce more LPFO because of limited storage at the refinery.
-Berthed 25th August 1306hrs
-Loading suspended due to ballast system problem on 26th august 1506hrs
-Completed loading 27th august 1850hrs
-Un-berthed 30 August and under towed to anchorage at bennet island due to inability to de ballast and dangerously blocked escravos bar.
Contrary to the assertion by the MD of PPMC that maintenance repair is ongoing at the Warri refinery, Vitol has not been able to evacuate the fuel oil allocation they received due to the ‘rust bucket vessel’ they nominated and also costing Nigerian tax payers and the general population this unwarranted hardship and encouraging capital flight by hiring old dad and non-functional foreign owned vessel to come and perform coastal operations in Nigeria
Written By,
Alex Gbadegeshin (Maritime Consultant)
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