Reps to Probe $18bn Turnaround Maintenance of Nigeria’s Four Refineries

The House of Representatives Committee on Petroleum Resources (Downstream) has resolved to investigate the turnaround maintenance of the four state-owned refineries.

The Committee’s resolution is coming a few days after the House Committee on Petroleum Resources (Midstream) made a similar commitment to unravel why, despite an investment of $18bn in TAM, the refineries are not functioning optimally.

The Committee also announced plans to probe the bureaucratic bottlenecks on the path of local and modular refineries in accessing crude oil.

Speaking at a news conference on Wednesday, Chairman of the Committee, Ikenga Ugochinyere (PDP, Imo) expressed worry over the reported shutdown of the Port Harcourt and Warri refineries, a few weeks after they resumed production.

The Committee, he said, would unmask the reason for the failure of the maintenance operations given that the company which carried out the maintenance has a reputation for excellence in service delivery. He also announced the setting up of multiple technical sub-committees to tackle critical challenges and pending investigations in the sector.

He said, “These technical sub-committees shall work towards fast-tracking the investigation of pending referrals to the committee, address crucial matters and developments that have arisen, which threaten sustainability in the downstream sector, to make the downstream sector stronger and more viable.”

The issues for investigation are the allegation of Dangote Refinery’s planned takeover of petroleum products transportation/retailing; turnaround maintenance of refineries, current state of the refineries, and suggested way out.

Others are OVH acquisition and complaints from the Nigerian National Petroleum Company Limited Retail staff, including House-ordered re-investigation; complaints of lack of feedstock by modular refineries and strategies to strengthen small/modular refining operations; review of Petroleum Industry Act to identify areas for amendment to strengthen the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the incorporation of artisanal refiners into the official petroleum refining value chain, among others.

Speaking on the significance of the sub-committees, Ugochinyere said, “This initiative is aimed at addressing threats to the viability and sustainability of the downstream sector. We are committed to delivering real reforms that will ensure efficiency, fairness, and competitiveness across the board.”

The House Committee is expected to receive reports from the sub-committees in the coming weeks as part of expanded legislative efforts to reposition the nation’s oil and gas industry.

The House is considering amending the Petroleum Industry Act to address emerging issues not covered by the extant law, saying the committee intend to put together all such areas of amendment for the approval of the House to strengthen NMDPRA/downstream petroleum sector.

He disclosed that the Committee resolved to dismiss the petition asking for the dissolution of the NMDPRA because the PIA confer the appointing powers on the President, saying, “We cannot go back to the old order where every government fires people anyhow.

“We are not out to protect anybody. If anyone is found to have been engaged in corrupt activities, the law should be allowed to take its course.”

Ugochinyere, who represents Ideato South/Ideato North Federal Constituency, Imo state, assured that the 10th House will work against any attempt at creating a monopoly in the nation’s oil and gas industry, in the interest of all Nigerians.