The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has opened discussions with Azikel Refinery in Bayelsa State on a structured product offtake partnership aimed at improving the supply of locally refined petroleum products to retail outlets across Nigeria.
The association disclosed this on Tuesday, following a visit by its delegation, led by its National President, Dr. Billy Gillis-Harry, to the refinery in Yenagoa.
The delegation was received by the Chairman of Azikel Refinery, Dr. Eruani Godbless, and members of the refinery’s management team.
Discussions during the visit centred on the refinery’s development and operational plans, as well as opportunities to strengthen cooperation between the refinery and petroleum products retailers.
A key issue was a proposed offtake arrangement that would enable PETROAN members to purchase petroleum products from Azikel Refinery, subject to mutually agreed commercial, technical and operational terms.
Speaking during the visit, Gillis-Harry said PETROAN was seeking practical partnerships with indigenous refineries to strengthen domestic supply and improve product availability.
“The growth of domestic refining capacity presents an important opportunity for Nigeria. As retailers we want to build practical partnerships with indigenous refineries that can improve product availability, strengthen supply chains and create greater certainty for businesses and consumers,” he said.
The PETROAN president said the engagement was intended to establish a sustainable supply relationship rather than merely discuss product purchases.
“Our objective is not simply to discuss offtake. We want to establish a dependable supply relationship that works commercially for the refinery and gives our members greater confidence in planning their businesses,” Gillis-Harry stated.
Responding, Godbless welcomed the PETROAN delegation and highlighted the importance of developing strategic relationships with petroleum products retail outlets as the refinery advances its operations.
The two parties agreed to sustain discussions on the commercial and operational requirements needed to establish the proposed offtake arrangement.
The engagement comes amid efforts to increase Nigeria’s domestic refining capacity and strengthen the availability of locally refined petroleum products.
PETROAN said collaboration with indigenous refineries remains part of its broader efforts to engage stakeholders across the downstream petroleum value chain and promote a more efficient, competitive and sustainable petroleum products market.
