Reps Set to Investigate Reasons Warri, Port Harcourt Refinery Shut Down for Repair

• The House of Representatives Committee on Petroleum Resources (Downstream) is investigating key issues in Nigeria’s oil industry
• The committee is also examining the challenges faced by local refineries in procuring crude and the potential impact of policies on oil retailers
• The committee's chairman emphasised the need for a thorough investigation and the creation of long-term solutions to address the sector's issues

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The House of Representatives Committee on Petroleum Resources (Downstream) is investigating the issues impacting the country's downstream oil industry.

The committee is expected to examine the acquisition of OVH Energy, the controversial turnaround maintenance of the nation’s refineries, and the growing concerns about Dangote Refinery’s potential market dominance, among other issues.

Ikenga Ugochinyere, the committee's chairman, made this announcement at a news conference on Wednesday in Abuja.

He expressed concern that the Port Harcourt and Warri refineries had to close again after the initial excitement surrounding their return to production.

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

The committee also stated that it is looking into the obstacles local and modular refineries face when attempting to obtain crude, as well as the reasons why local refiners need to visit Switzerland to discuss local crude procurement.

Ugochinyere emphasised that the House plans to investigate the cause of the issue, particularly since the turnaround maintenance process is typically regarded as a respectable one.

He went on to say that the House will investigate what went wrong before deciding whether to sell or privatise the refineries.

He added that lawmakers are committed to finding a long-term solution to the problems, especially with regard to supplying stock for modular and other local refineries. The committee has also received numerous petitions on issues affecting the petroleum industry.

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According to Ugochinyere, the committee has received several petitions from retailers, oil marketers, and refinery owners, who have raised concerns about the bottleneck they are facing.

They also complained about their significant investments, which they believe could be impacted by certain policies, particularly the claim that the Dangote Refinery will take over the transportation and retailing of petroleum products.

He further mentioned that oil retailers have voiced concerns about the potential takeover of their companies, which has created tension across the nation. Stakeholders have protested that their investments in the country could suffer if the policy continues.

Ugochinyere stated that the House had rejected the findings of a previous investigation into the matter and directed the committee to reopen the investigation into the purchase of OVH Energy and the complaints made by NNPCL retail employees.

To improve the NMDPRA and the downstream petroleum industry, he added, the committee will consider methods to amend the Petroleum Industry Act to address new challenges not covered by the legislation. It plans to compile these revisions for the House's approval.

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Groups speak on selling Port Harcourt, Warri Refineries

Legit.ng reported that the Organised Private Sector and oil marketers have demanded the quick privatisation of the Port Harcourt and Warri refineries after the poorly executed renovations caused both plants to squander over $2.4 billion and go back into hibernation within six months of opening.

Officials from the Federal Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation Limited remained silent in response to the OPS's most recent call.

However, the regulatory body for the midstream and downstream segments of the oil industry stated that the privatisation of these plants would only take place with approval from the Federal Executive Council.

Source: Legit.ng