House of Representatives Committee on Petroleum Resources (Downstream) has launched a probe into the issues affecting the nation’s downstream oil sector.
Among other things, the committee is expected to probe the controversial turnaround maintenance of the country’s refineries, the acquisition of OVH Energy, and the mounting concerns over market dominance by the Dangote Refinery.
Chairman of the Committee, Ikenga Ugochinyere, disclosed this during a press conference in Abuja on Wednesday.
He said it was disturbing that after the hype that greeted the return of the Port Harcourt and Warri refineries to production status, they had to shut down again.
“We are not out to protect anybody. If anybody is found to have been engaged in corrupt activities, the law should be allowed its course,” Ugochinyere said.
The committee also announced that it was investigating the bottlenecks associated with obtaining crude by local and modular refineries, and why local refiners should travel to Switzerland to negotiate obtaining crude locally.
According to him, the House intends to find out what went wrong, especially against the backdrop that the company handling the turnaround maintenance is a reputable company.
He added that before considering whether or not the refineries should be sold or privatised, the House will find out what went wrong.
He said the Committee has received several petitions on issues affecting the petroleum sector, adding that lawmakers would find a permanent solution to the issue, especially when it has to do with providing stock for modular and other local refineries.
According to Ugochinyere, the committee also received several petitions from refinery owners, oil marketers, and retailers on the bottleneck they are having, adding that they have complained about their huge investment, which is likely to be affected by certain policies, especially the allegation of the Dangote Refinery’s planned takeover of petroleum products transportation/retailing.
He said the stakeholders had complained that their investment in the country would be impacted negatively if the policy is allowed to subsist, adding that oil retailers have also complained about the likely takeover of their business, which has led to tension across the country.
Ugochinyere said the committee would reopen the investigation into the acquisition of OVH and the complaints from NNPCL retail staff, adding that the House had rejected the report of an earlier investigation into the matter and ordered the committee to reopen the matter.
He further noted that the committee would look at ways of amending the Petroleum Industry Act to address emerging issues not covered by the law, saying it intends to put together all such areas of amendment for the approval of the House to strengthen the NMDPRA/downstream petroleum sector.
