PETROAN Opens Talks With Azikel Refinery for Direct Local Fuel Supply Across Nigeria

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has opened discussions with Azikel Refinery in Bayelsa State over a proposed structured offtake arrangement that could increase the availability of locally refined petroleum products at retail outlets across Nigeria.

The development followed a visit by a PETROAN delegation led by its National President, Dr Billy Gillis-Harry, to Azikel Refinery in Obunagha, Yenagoa, where the association engaged the refinery’s management on its development plans, operational outlook and potential commercial cooperation.The proposed arrangement would enable PETROAN members to obtain petroleum products directly from Azikel Refinery, subject to mutually agreed commercial, technical and operational terms.

The discussions are significant within Nigeria’s evolving downstream petroleum sector, where the expansion of domestic refining capacity is increasingly being linked to efforts to strengthen local supply chains and reduce dependence on imported refined products.

Gillis-Harry said PETROAN was interested in establishing practical relationships with indigenous refineries capable of improving product availability, strengthening supply networks and providing greater certainty for petroleum retailers and consumers.

He stressed that the association’s objective goes beyond securing products for its members, saying PETROAN wants to develop dependable commercial relationships that can work for both refiners and retailers.

Azikel Refinery Chairman, Dr Eruani Azibapu Godbless, welcomed the PETROAN delegation and highlighted the importance of strategic relationships with petroleum products retailers as the refinery advances its operations. Both sides agreed to continue discussions on the commercial and operational requirements of the proposed arrangement.

The proposed PETROAN-Azikel relationship would also give the refinery a potential organised market for its products while creating an additional supply channel for retail outlet operators. Industry reporting has described the arrangement as a possible direct link between domestic refining and retail distribution, potentially reducing the number of intermediaries involved in the supply chain.

Azikel Group identifies its petroleum business as a refinery project designed to produce products including petrol, diesel, kerosene, aviation fuel, liquefied petroleum gas and heavy fuel oil. The company has previously stated that its refinery project is intended to add value to Nigerian crude oil and improve domestic refined-product sufficiency.

There is, however, an important distinction between the current discussions and a completed commercial supply contract. While some describe the development as a partnership, the more detailed accounts indicate that the parties are still working through the commercial, technical and operational conditions required for the proposed offtake arrangement.

The development therefore represents an ongoing industry engagement rather than confirmation that a nationwide supply agreement has already commenced. The eventual impact on fuel availability, distribution costs and retail prices will depend on the refinery’s operational capacity, product volumes, pricing arrangements, logistics and the final terms agreed by both parties.

For Nigeria’s downstream sector, the discussions nevertheless underline the growing importance of establishing stronger links between domestic refiners and petroleum marketers. As more local refining projects progress, reliable offtake arrangements could become increasingly important to ensuring that refined products reach consumers efficiently across the country.

Obaland magazine will continue to monitor the negotiations and subsequent developments surrounding the proposed PETROAN-Azikel supply arrangement.

PETROAN has opened talks with Azikel Refinery for a proposed direct fuel supply arrangement aimed at strengthening locally refined petroleum product distribution across Nigeria.