INTELS raises the alarm over illegal midstream discharge

Integrated Logistics Services (INTELS) has alleged that diversion of oil and gas-related cargoes to non-designated terminals still happens, saying that such practices are threats to government revenue collection drive. This is even as the Onne, Rivers state-based port concessionaire also stated that midstream discharge is a clear violation of a Presidential order banning such.

It will be recalled that midstream discharge of cargoes was banned by the Federal Government in May 22, 2002. Also, on February 22, 2007, the then-Minister of Finance, Nenadi Usman, also sent a circular directing the Nigeria Customs Service to stop the illegal midstream discharge of cargoes.

Speaking during an oversight visit by the Senate Committee on Marine Transport to its facility recently, Chief Executive Officer of Intels; Andrew Daws said that the Federal Government was losing huge revenue to illegal midstream discharge.

He told the lawmakers that: “Government should protect the licensed operators in other to take on more revenue for government.

“Senate needs to support the Ministry of Transportation and the Nigerian Ports Authority (NPA), to address diversion of revenue accruing from oil and gas related cargoes to non-designated terminals.

“NPA cargo dues in oil and gas terminals are four times higher per tonne, while other terminals created significant loss of revenue to NPA, irrespective of Presidential directive to enforce the rules.

“Ability to meet the Guaranteed Minimum Tonnage (GMT) target as provided in the concession agreement is threatened with the illegal diversion of cargoes to non-designated facilities.

Also speaking, the Deputy Chief Executive Officer of Intels; Adamu Abubakar, said the committee should assist in looking into the private jetties receiving and discharging cargoes from ocean-going vessels, irrespective of Presidential directive to enforce the rules.