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Two major players in the downstream oil and gas sub-sector, LINC Nigeria Limited (LINC) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), have signed a memorandum of understanding (MoU) to forge a strategic partnership that will enhance the availability of refined petroleum products in the country.
The MoU, which was signed last week in Abuja, followed months of negotiations and feasibility assessment of the venture aimed at seamless distribution of petroleum products to all the nooks and crannies of Nigeria.
LINC Nigeria Limited is a fully indigenous corporate organisation with interest in the oil and gas and other sectors of the economy.
Giving insight into the partnership, the Chief Executive Officer of LINC Nigeria, Mr. Pat. Ifeanyi Oramah, explained that by the agreement, his company would provide tank farm facilities for the warehousing of the petroleum products procured by independent petroleum marketers before distribution.
The products usually procured by IPMAN from the Nigeria National Petroleum Corporation’s (NNPC’s) subsidiaries – including the Petroleum Product Marketing Company Limited (PPMC) and Petroleum Products Pricing Regulatory Agency (PPPRA) and other international sources – will be stored in the tank farms from where they will be trucked to the filling stations for dispensing.
Oramah disclosed that this collaboration would ensure easy availability of the products in the far north, south-east and south-south flanks of the country with tremendous impact on the pump prices of the products at the fuel stations.
“In the specific situation where products allocation is from the Port Harcourt refinery depot, such products shall be warehoused in LINC’s Calabar tank farm for storage,” Oramah stressed, adding that in the event that LINC’s tank farm is unable to take all the products sourced by IPMAM, other tank farms could be engaged for storage.
It was also agreed by the parties that whenever LINC sources petroleum products on its own, “IPMAN shall enjoy the right of “first refusal” to buy such products..”
The LINC-IPMAN partnership is coming on the heels of an international collaboration agreement between LINC Nigeria Ltd and Saudi Crown, a big player in the oil and other related industries, in the Middle East..
While Oramah represented LINC at the signing ceremony in the UAE, the Saudi Crown team was led by its Managing Director\CEO, Dr. Kaher.
