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TOPIC: THE INTER-RELATIONSHIP BETWEEN LOGISTICS AND ITS COUNTERPART
AGENCIES IN THE SUPPLY CHAIN MANAGEMENT OF PETROLEUM PRODUCT
WHAT IS LOGISTICS?
It is a process of planning, implementing and controlling the efficient, effective flow and
storage of goods, services and related information from point of origin to point of
consumption for the purpose of conforming to customers’ requirement.
WHAT IS SUPPLY CHAIN MANAGEMENT OF PETROLEUM PRODUCT?
It is the management of supplies through several channels that are linked for the
movement of petroleum products from the point of origin to the end users or consumers.
LOGISTICS COUNTERPART AGENCIES AND AGENTS
Surveyors, Supercargo, Shipping companies, Jetty Operator, Bank, PPPRA, DPR, PPMC, PEF,
Security Agencies
SURVEYORS:
These are teams of government approved petroleum product inspectors, saddled with the
responsibility of monitoring the commercial value, quality and quantity of petroleum
products. In most cases they carry out laboratory analysis of the product at loading point of
the vessel and on shore tanks after its discharge. Surveyors represent Banks, Cargo owner,
PPPRA, Cargo supplier etc. They operate through registered corporate names such as: SGS,
Inspectorate, , GMO, SAYBOLT etc.
SUPER CARGO:
This is a representative of either the ship owner or cargo owner on board a vessel
responsible for overseeing or monitoring the supply of petroleum product from the load
port to the receiving terminal. His main role is to provide a complimentary security to the
cargo on behalf of the cargo owner.
JETTY OPERATORS:
Jetties are seaports where vessels berth in order to either load or discharge petroleum
products. Example in the case of Calabar specifically are; ECMT, INTELS, Dozzy Jetty,
Northwest Jetty, Nigerian Navy Jetty etc.
REGULATORS
PPPRA: Petroleum Product Pricing Regulatory Agency
 They receive letter of expression from Mainland requesting for permit to import
petroleum product
 They issue import permit
 They monitor product discharge from jetty both quantity and quality
 They issue laycan week
 They regulate product prices
 They receive truck out report as a pre-condition for approval of subsidy claim.
DPR: Department of Petroleum Resources
 They issue license for depot operation
 They issue import permit
 They monitor depot facilities and capacity
 They monitor truck out of petroleum product down to the end users
 They monitor PEF claim through way bill verification and appendage
 They monitor health and safety of the environment
 They also monitor truck loading manifest
PEF: Petroleum Equalization Fund
This a government agency which capture loaded trucks from the depot to the receiving
depot i.e. NNPC depots of receiving zone like NNPC Enugu, NNPC Aba, NNPC Suleja, NNPC
Gombe etc. The loaded truck is tagged with what is referred to as Radio Frequency
Identification (RFID) Aka “Aquila” to track the movement of the product to final
destination; in order to mitigate false money claims in bridging. PEF seek to regularize the
pump price of petroleum product across all the states of the federation by taking care of
haulage cost. The cost is determined by quantity of product and the distance of haulage to
the receiving destination.
PPMC: Pipeline and Product Marketing Company
 This is a subsidiary of NNPC, it receive crude oil from NNPC supplies to local refineries
like KRPC, WRPC etc. who after distillation sends it back to PPMC for distribution to depots
 It also supplements local production and supply due to inadequacies of local refineries
by importing product and distributing them to depots.
 It monitors distribution pattern through truck out report sent to it from the logistics
department of Mainland. This is also a pre-condition for approval of subsidy claim
NPA: NIGERIA PORT AUTHORITY
These are the regulators of Nigeria Waterways both seaport and inland water ways. They
issue license or lease the jetty to private companies e.g. in the case of Calabar; ECMT,
INTELS, Dozzy Jetty, Northwest Jetty etc.
SECURITY AGENCIES
These are made up of the Navy, Department of State Security Services and Customs. These
agencies monitors the vessel content i.e. cargo manifest, cargo origin quality and quantity,
cargo destination etc. basically, their concern is to stop the importation of contraband
products
INTEREST GROUPS
NUPENG (National Union of Petroleum and Natural Gas Workers), VIO (Vehicle Inspection
Officers) and PTD (Petroleum Truck Drivers) IPMAN (Independent Petroleum Marketers
Association of Nigeria) these groups promote the interest of their members who are
usually truck drivers and customers. They collect levies with the aid truck loading manifest
given to them by Logistics department.
In conclusion, there are complex operation networkof logistics supply chain management in the
receipt and distribution of petroleum product. In all of these, logistics operation thrives through a
mutual interface withall the aforementioned agencies, agents and association.
PRESENTEDBY
MR DIVINE GREATMAN YISA.
OPERATION MANAGER
MAINLAND OILAND GAS.

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THE SUPPLY CHAIN OF PETROLEUM PRODUCT

  • 1. TOPIC: THE INTER-RELATIONSHIP BETWEEN LOGISTICS AND ITS COUNTERPART AGENCIES IN THE SUPPLY CHAIN MANAGEMENT OF PETROLEUM PRODUCT WHAT IS LOGISTICS? It is a process of planning, implementing and controlling the efficient, effective flow and storage of goods, services and related information from point of origin to point of consumption for the purpose of conforming to customers’ requirement. WHAT IS SUPPLY CHAIN MANAGEMENT OF PETROLEUM PRODUCT? It is the management of supplies through several channels that are linked for the movement of petroleum products from the point of origin to the end users or consumers. LOGISTICS COUNTERPART AGENCIES AND AGENTS Surveyors, Supercargo, Shipping companies, Jetty Operator, Bank, PPPRA, DPR, PPMC, PEF, Security Agencies SURVEYORS: These are teams of government approved petroleum product inspectors, saddled with the responsibility of monitoring the commercial value, quality and quantity of petroleum products. In most cases they carry out laboratory analysis of the product at loading point of the vessel and on shore tanks after its discharge. Surveyors represent Banks, Cargo owner, PPPRA, Cargo supplier etc. They operate through registered corporate names such as: SGS, Inspectorate, , GMO, SAYBOLT etc. SUPER CARGO: This is a representative of either the ship owner or cargo owner on board a vessel responsible for overseeing or monitoring the supply of petroleum product from the load port to the receiving terminal. His main role is to provide a complimentary security to the cargo on behalf of the cargo owner. JETTY OPERATORS: Jetties are seaports where vessels berth in order to either load or discharge petroleum products. Example in the case of Calabar specifically are; ECMT, INTELS, Dozzy Jetty, Northwest Jetty, Nigerian Navy Jetty etc. REGULATORS PPPRA: Petroleum Product Pricing Regulatory Agency
  • 2.  They receive letter of expression from Mainland requesting for permit to import petroleum product  They issue import permit  They monitor product discharge from jetty both quantity and quality  They issue laycan week  They regulate product prices  They receive truck out report as a pre-condition for approval of subsidy claim. DPR: Department of Petroleum Resources  They issue license for depot operation  They issue import permit  They monitor depot facilities and capacity  They monitor truck out of petroleum product down to the end users  They monitor PEF claim through way bill verification and appendage  They monitor health and safety of the environment  They also monitor truck loading manifest PEF: Petroleum Equalization Fund This a government agency which capture loaded trucks from the depot to the receiving depot i.e. NNPC depots of receiving zone like NNPC Enugu, NNPC Aba, NNPC Suleja, NNPC Gombe etc. The loaded truck is tagged with what is referred to as Radio Frequency Identification (RFID) Aka “Aquila” to track the movement of the product to final destination; in order to mitigate false money claims in bridging. PEF seek to regularize the pump price of petroleum product across all the states of the federation by taking care of haulage cost. The cost is determined by quantity of product and the distance of haulage to the receiving destination. PPMC: Pipeline and Product Marketing Company  This is a subsidiary of NNPC, it receive crude oil from NNPC supplies to local refineries like KRPC, WRPC etc. who after distillation sends it back to PPMC for distribution to depots
  • 3.  It also supplements local production and supply due to inadequacies of local refineries by importing product and distributing them to depots.  It monitors distribution pattern through truck out report sent to it from the logistics department of Mainland. This is also a pre-condition for approval of subsidy claim NPA: NIGERIA PORT AUTHORITY These are the regulators of Nigeria Waterways both seaport and inland water ways. They issue license or lease the jetty to private companies e.g. in the case of Calabar; ECMT, INTELS, Dozzy Jetty, Northwest Jetty etc. SECURITY AGENCIES These are made up of the Navy, Department of State Security Services and Customs. These agencies monitors the vessel content i.e. cargo manifest, cargo origin quality and quantity, cargo destination etc. basically, their concern is to stop the importation of contraband products INTEREST GROUPS NUPENG (National Union of Petroleum and Natural Gas Workers), VIO (Vehicle Inspection Officers) and PTD (Petroleum Truck Drivers) IPMAN (Independent Petroleum Marketers Association of Nigeria) these groups promote the interest of their members who are usually truck drivers and customers. They collect levies with the aid truck loading manifest given to them by Logistics department. In conclusion, there are complex operation networkof logistics supply chain management in the receipt and distribution of petroleum product. In all of these, logistics operation thrives through a mutual interface withall the aforementioned agencies, agents and association. PRESENTEDBY MR DIVINE GREATMAN YISA. OPERATION MANAGER MAINLAND OILAND GAS.