The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is in discussions with Azikel Refinery for a proposed direct product supply arrangement. This move aims to strengthen domestic fuel distribution as the Bayelsa-based refinery nears commercial operations. PETROAN National President, Dr. Billy Gillis-Harry, led an official site inspection and commercial engagement at the refinery in Obunagha, Yenagoa. The visit was part of PETROAN's industry oversight and stakeholder engagement programme.
The proposed structured offtake framework could shorten supply chains between refiners and filling stations by reducing intermediaries. This would provide refiners with a predictable market and retailers with a dependable source of supply. During the engagement, PETROAN received a presentation on the refinery's development history, operational planning, refining capacity, product slate, and partnership opportunities for the retail segment. Azikel Refinery has been re-engineered to a 25,000-barrels-per-day full-slate hydro-skimming facility.
Azikel Refinery's re-engineering from its original design capacity of 12,000 barrels per day is a significant upgrade. The refinery is configured to process crude oil and condensate into Premium Motor Spirit, Automotive Gas Oil, kerosene, Aviation Turbine Fuel, and Liquefied Petroleum Gas. The project has reached an advanced stage of construction and integration following the arrival and installation of its 200-tonne Crude Distillation Unit. PETROAN is committed to working with indigenous refiners to build a sustainable domestic petroleum products supply chain.
Dr. Billy Gillis-Harry emphasized that PETROAN's objective is to build practical partnerships that improve product availability, strengthen supply chains, and create greater certainty for businesses and consumers. The association aims to establish enduring commercial relationships beneficial to both refiners and marketers. Azikel Group President and Chief Executive Officer, Dr. Eruani Azibapu Godbless, welcomed PETROAN's delegation and affirmed the refinery's readiness to build strategic relationships with petroleum products retailers.
Collaboration between refiners and retail outlet owners is essential for efficient distribution and securing market access for locally refined products. Both parties agreed to sustain engagement to address the commercial, technical, and operational requirements needed to advance the proposed offtake partnership. PETROAN's engagement with Azikel Refinery forms part of a broader strategy to deepen collaboration with indigenous refineries and other stakeholders across the downstream petroleum value chain.
PETROAN's strategy aims to promote multiple reliable sources of domestic supply and greater competition in the market. The association is working to assess emerging domestic refining capacity, open dialogue with indigenous refiners, and identify commercially viable arrangements. These arrangements should improve the availability, reliability, and distribution of locally refined petroleum products. The growth of local refining capacity is seen as a pathway out of import dependence.
The discussions between PETROAN and Azikel Refinery are ongoing, with both parties committed to building a sustainable domestic petroleum products supply chain. The proposed direct product supply arrangement could have a significant impact on the Nigerian fuel market. Key players are working together to establish a reliable and efficient supply chain that benefits both refiners and retailers.
Key points
- PETROAN in talks with Azikel Refinery for direct fuel supply arrangement
- Proposed offtake framework could shorten supply chains and provide a predictable market
- Collaboration aims to promote multiple reliable sources of domestic supply and greater competition
