Oil firm, MRS Limited, has denied allegations that it expropriated petroleum products belonging to the Nigerian National Petroleum Corporation (NNPC).
NNPC’s Group General Manager, Group Public Affairs Division, Ndu Ughamadu, quoted the Chief Operating Officer, Downstream, NNPC, Henry Ikem-Obih, as saying that MRS expropriated just over 30 million litres of petrol.
He said the corporation stored the fuel in its depot in Apapa, Lagos, under a throughput arrangement to ensure a robust strategic reserve, adding that MRS has fully complied by returning the 30 million litres of petrol that it expropriated.
However, MRS management has disowned the report, saying it was unfounded and malicious.
In a statement, the company said it is a clear misrepresentation of the workings and processes of the downstream operations.
"It is unfortunate that the national oil firm has chosen to repeatedly distort facts and malign the integrity of our company," it said.
"For the sake of clarity, MRS is not a storage company, rather it is a throughput company. It is important at this point to explain in lay man terms, what throughput means.
"Throughput is akin to a banking arrangement. In a throughput contract, we act as a product bank to different customers who we throughput products for. But, because of the operational process involved in replenishing stock, we have 7 days from when we receive the demand to provide the products if we have stock out.
"This act of storing the products in a comingled state (where products belonging to various customers are mixed) and loaded out on demand is called throughput and is usually for a 30-day period."