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NNPC, Total to consider lifting oil through rail




The Nigerian National Petroleum Corporation (NNPC) and Total Nigeria Plc are considering the movement of petroleum products through the rail system in other to reduce the cost of transportation.

This, they believed, is possible if plans by government to overhaul the rail sector becomes realistic.

Speaking at the Oil Trading and Logistics Africa (Downstream) on Wednesday in Lagos, representatives of the two oil firms said the option remained viable to address some key challenges in the downstream sector and boost return on investment.

General Manager, NNPC Retail Limited, Finance and Account, Jumah Dansure, said the organisation is considering moving petroleum products through rail to free up the nation’s road network and mitigates challenges in the value-chain.

Dansure, who re-established the organisation’s commitment to standard and quality, also said the firm would tap into the recently launched speed limiter policy of the Federal Road Safety Corps (FRSC) to deal with over speeding among drivers and ensure proper monitoring of products.
‎General Manager, Sales and Marketing, Total Nigeria Plc, Adesua Adewole, who said transporting oil products through the rail was the best option, argued that it would become practicable if current rail projects in the country became operational.

Adewale, who said industry best practices in downstream sector must be shared across board, stated that the company is in partnership with the Standards Organisation of Nigeria (SON), and would continue to ensure that product qualities are met.

She said the organisation’s computerised product monitoring initiative and necessary training provided to its truck drivers among other plans by the oil company helped in making loading and discharging of oil as well transportation safer for the consumer.

Adewale, who spoke and moderated the Petroleum Retail ROI with Consumer as King – Forecourt Optimisation, Brand Value, Products’ Standard plenary, said players could meet required standard and still make return on investment.

Director-General, SON, Osita Aboloma, said the lack of functioning refineries coupled with lack adequate public awareness in Nigeria, is responsible for the sharp practices in the system, such as product adulteration and faking.

Represented by State Head, SON, Dele Ayeni, he the lamented that some Nigerians deliberately endangered the lives of citizens through the importation of fake products into the country.

He said the agency has standard for the downstream sector and would partner with necessary agencies and stakeholders to ensure compliance in the sector.

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