PETROAN Opens Talks With Azikel Refinery Over Direct Fuel Supply

The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has opened discussions with Azikel Refinery in Bayelsa State over a proposed direct supply arrangement for locally refined petroleum products. The proposed partnership could allow members of the retail association to purchase products directly from the refinery, subject to agreement on commercial, technical and operational conditions. PETROAN President Billy Gillis-Harry led a delegation from the association to Azikel Refinery in Yenagoa, where they met with the refinery’s management. Discussions focused on the refinery’s development and operational plans as well as possible cooperation between the refinery and petroleum retailers. Amajor part of the meeting was the proposed offtake arrangement, under which PETROAN members would have access to petroleum products produced by the refinery. Gillis-Harry said the association was interested in building stronger relationships with indigenous refineries as Nigeria expands its domestic refining capacity. According to him, direct relationships between refineries and retailers could help create more predictable supply arrangements for filling-station operators. He said PETROAN’s objective was to establish a sustainable supply relationship that would work commercially for the refinery while giving its members greater confidence in planning their businesses. Chairman of Azikel Refinery, Eruani Godbless, welcomed the discussions and stressed the importance of strategic relationships with petroleum retailers as the refinery progresses with its operations. Both sides agreed to continue discussions on the commercial and operational requirements of the proposed arrangement. The development comes amid efforts to increase local refining and reduce reliance on imported petroleum products. For consumers, the eventual impact of such an arrangement would depend on the refinery’s production capacity, supply volumes, commercial terms and other factors affecting the downstream petroleum market. The proposed PETROAN-Azikel relationship therefore remains under discussion, with both sides expected to continue negotiations before any final supply agreement is implemented.