Even as Nigerians are yet to accept its official pronouncement by the Federal Government, one of the biggest downstream oil company in Nigeria; Integrated Oil and Gas Limited has expressed optimism that the removal of subsidy on Premium Motor Spirit (PMS) will further boost the importation level of the company and that the company stands to gain more from the subsidy removal.
Speaking at the company’s end of the year party held in Lagos recently, the Group Managing Director of Integrated oil and gas limited, Eng. Tony Ihenacho said that the company is well positioned to take full advantage of the deregulation scheme as it has acquired additional vessels and barges as well as building of more filling stations.
Ihenacho said that removing the subsidy implies that “there will be no limit to the quality of products that we can import for our marketing activities; this is our desire as it will definitely shoot up our importation. Whichever direction the industry goes in 2012, we are confident that our performances will definitely improve”
“As part of our growth strategy, we have invested in the acquisition of additional vessels and barges as well as building and acquiring more filling stations. These acquisitions will also position us well for deregulation of the oil industry” he assured.
Ihenacho said that with the new policy direction of the Petroleum Product Pricing Regulatory Agency (PPPRA) that only organization that have invested in depot infrastructures will be given allocation to import petroleum product, “we are confident that our PMS importation will substantially increase and this will improve our output in the years to come”
He however lamented that the year 2011 has been very challenging and difficult for operators in the oil and gas industry as well as most economic sectors.
According to him, the operating environment was unstable and characterized by fluctuating foreign exchange rates which at times made a mockery of projected income.
“The inability of the refineries to run optimally implied that a greater percentage of petroleum products consumption in the country had to be imported” he said.
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