Nothing wrong with Farandol: Afroneft

THE local oil majors must learn that Namcor is a reality and must get around the table with the parastatal to talk about a “comfortable co-existence”, the Chairman of Afroneft, Ivor Ichikowitz, told the media in Windhoek yesterday.

Afroneft started supplying Namcor with fuel products at the beginning of this year after a three-year supply deal with Namibia Liquid Fuels lapsed at the end of last year. Namcor, wholly owned by the Government, supplies 50 per cent of the country’s fuel needs, with the rest provided by the country’s five petroleum companies.The first consignment of fuel products from Afroneft, which arrived at the port of Walvis Bay at the beginning of last month, was a major bone of contention between Namcor and the local oil companies, with accusations ranging from product specification to the vessel being unfit to carry fuel products.The vessel had to return with its cargo after the local oil companies refused the consignment.In his first meeting with the local media yesterday, Ichikowitz was adamant that the vessel, Farandol, which carried the ill-fated first fuel consignment, fully met international safety and environmental standards.”In our opinion the rejection of the vessel was without grounds.We find it strange that no oil company has so far put their objections in writing,” Ichikowitz questioned.However, local oil industry sources say that there were definite problems with the Farandol, but would not elaborate.BP Managing Director Sipho Zulu and chairman of the oil industry in Namibia, asked about the safety aspects of Farandol and his company’s rejection of the consignment, refused to be drawn in.He only committed himself to saying that the local oil industry was very strict about safety aspects for vessels carrying fuel products.”The only reason why we vet a vessel is for safety,” Zulu stated.He again repeated that BP was very supportive of Namcor becoming a player in the local industry.The two main aspects of safety are fire and oil spillage at sea, and “there is no compromise on this”, Zulu emphasised.The same international standards that apply in London or any other major port in the world are applicable in Namibia, he continued.On his part Ichikowitz said that Afroneft would not jeopardise its reputation by using a vessel that is not safe to carry fuel products.”We have never ever put cargo (fuel) on a single-hull vessel,” he pointed out.Ichikowitz said the allegation that the Farandol was a single-hull vessel is “absolute nonsense”.In terms of international standards all vessels carrying fuel products should be double-hulled.Farandol, he said, had been used by international oil majors and had called for many years at other major ports such as Baltimore and Rotterdam with “extremely stringent environmental standards”.Asked why the local industry would reject such a vessel, he speculated that it could be that the local firms did not want Namcor to grow into a strong competitor.He stopped just short of saying that the local firms were trying to frustrate Namcor’s efforts to become a major player in the local fuel industry.Ichikowitz also took issue with the local vessel vetting process, where all five oil companies must approve a vessel carrying fuel products for the Namibian market.”It is an absurd situation.It is the only country in the world where all oil companies must vet a vessel carrying fuel for local consumption,” Ichikowitz said.He said Namcor and the local oil companies must get together to thrash out a set of common standards.To this, Zulu said: “Everything is possible.”Zulu pointed out, though, that the standards used by the five majors were almost similar.Ichikowitz said Namcor and his company were experiencing ongoing problems with the oil industry, but hoped that these would sorted out through negotiations.Zulu said he did not meet the three-man Afroneft delegation that was in the country, and was also not aware of any other oil company executive who engaged the group.Namcor, wholly owned by the Government, supplies 50 per cent of the country’s fuel needs, with the rest provided by the country’s five petroleum companies.The first consignment of fuel products from Afroneft, which arrived at the port of Walvis Bay at the beginning of last month, was a major bone of contention between Namcor and the local oil companies, with accusations ranging from product specification to the vessel being unfit to carry fuel products.The vessel had to return with its cargo after the local oil companies refused the consignment.In his first meeting with the local media yesterday, Ichikowitz was adamant that the vessel, Farandol, which carried the ill-fated first fuel consignment, fully met international safety and environmental standards.”In our opinion the rejection of the vessel was without grounds.We find it strange that no oil company has so far put their objections in writing,” Ichikowitz questioned.However, local oil industry sources say that there were definite problems with the Farandol, but would not elaborate.BP Managing Director Sipho Zulu and chairman of the oil industry in Namibia, asked about the safety aspects of Farandol and his company’s rejection of the consignment, refused to be drawn in.He only committed himself to saying that the local oil industry was very strict about safety aspects for vessels carrying fuel products.”The only reason why we vet a vessel is for safety,” Zulu stated.He again repeated that BP was very supportive of Namcor becoming a player in the local industry.The two main aspects of safety are fire and oil spillage at sea, and “there is no compromise on this”, Zulu emphasised.The same international standards that apply in London or any other major port in the world are applicable in Namibia, he continued.On his part Ichikowitz said that Afroneft would not jeopardise its reputation by using a vessel that is not safe to carry fuel products.”We have never ever put cargo (fuel) on a single-hull vessel,” he pointed out.Ichikowitz said the allegation that the Farandol was a single-hull vessel is “absolute nonsense”.In terms of international standards all vessels carrying fuel products should be double-hulled.Farandol, he said, had been used by international oil majors and had called for many years at other major ports such as Baltimore and Rotterdam with “extremely stringent environmental standards”.Asked why the local industry would reject such a vessel, he speculated that it could be that the local firms did not want Namcor to grow into a strong competitor.He stopped just short of saying that the local firms were trying to frustrate Namcor’s efforts to become a major player in the local fuel industry.Ichikowitz also took issue with the local vessel vetting process, where all five oil companies must approve a vessel carrying fuel products for the Namibian market.”It is an absurd situation.It is the only country in the world where all oil companies must vet a vessel carrying fuel for local consumption,” Ichikowitz said.He said Namcor and the local oil companies must get together to thrash out a set of common standards.To this, Zulu said: “Everything is possible.”Zulu pointed out, though, that the standards used by the five majors were almost similar.Ichikowitz said Namcor and his company were experiencing ongoing problems with the oil industry, but hoped that these would sorted out through negotiations.Zulu said he did not meet the three-man Afroneft delegation that was in the country, and was also not aware of any other oil company executive who engaged the group.