Alleged economic sabotage: Senate commences probe on NNPCL, others over $1.5bn Port Harcourt Refinery maintenance scandal

 

 

Ignatius Okorocha, Abuja and  Emmanuel Nlewedum, Port Harcourt

 

Amid pervasive allegations of sabotage in the petroleum industry, the Senate has raised questions over $1.5 billion approved in 2021 for the turn-around maintenance of the Port Harcourt Refinery with little or no result.

Consequently, the upper chamber lamented that it was unfair and wrong to treat government businesses or public companies as  orphans while private businesses are flourishing and thriving.

The Leader of the Senate and Chairman, Senate Ad-hoc Committee to investigate the alleged economic sabotage in the Nigerian Petroleum Industry, Senator Opeyemi Bamidele raised the questions at a session with stakeholders in the industry at the National Assembly Complex, Abuja on Wednesday.

The session was attended by Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; Group Managing Director, Nigerian National Petroleum Corporation Limited (NNPCL), Malam Melee Kyari; Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe and Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Mr. Farouk Ahmed, among others.

 

The Federal Executive Council had approved the plan by the Ministry of Petroleum Resources to rehabilitate and turn around the Port Harcourt Refinery with a whopping sum of $1.5 billion under the administration of former President Muhammadu Buhari.

 

Despite the huge investment, the government-owned refinery is yet to function effectively, a situation that compelled the country to depend almost entirely on the importation of petroleum products.

 

At the session with stakeholders Wednesday, however, Bamidele expressed grave concerns about the dysfunctionality of the government-owned refineries despite billions of Dollars invested to carry out turn-around maintenance on the installation.

 

Bamidele observed that the federation “is undergoing a truly challenging period,” pointing out that the distribution and supply of refined petroleum products “has been irregular and problematic in the recent history of our fatherland.”

 

“The long queues at filling stations are obviously a testament to this challenge. A situation, whereby we now depend almost entirely on the importation of these products, even when we daily supply the global oil market no fewer than two percent of its crude oil requirements, is to say the least, highly worrisome.

 

“We also have at hand a grievous issue of national concern that directly borders on the importation of hazardous petroleum products and dumping of substandard diesel into the country.”

 

Under different administrations since 1999, Bamidele observed that the federal government “has invested billions of dollars to maintain and turn around the state-owned refineries in Kaduna, Port Harcourt and Warri. But the refineries are still not functioning.

 

“In 2021, specifically, the Federal Executive Council approved $1.5 billion for the turn-around maintenance of the Port Harcourt Refinery. Yet, this investment has not yielded significant returns.

 

“For us, in the Senate, we believe, it is unfair and unpatriotic to treat government businesses or public corporations as an orphan while private businesses are flourishing and thriving,” Bamidele pointed out at the interactive session.

 

To permanently nip these challenges in the bud, the chairman of the ad-hoc committee disclosed the plan of the Senate to jointly conduct investigation into diverse allegations of economic sabotage in the petroleum industry along with the House of Representatives.

 

Bamidele, equally, noted that there would be no room for grandstanding during the investigative hearing, promising that the committee would carry out its mandate fairly and impartially.

 

While insisting that nobody will be untouchable, Bamidele said the task of ridding the petroleum industry of malfeasance “is urgent and must be carried out in the spirit of nationalism and patriotism. We are ready to carry it out with all sense of purpose, honour and responsibility.

 

“We are also taking it seriously with a view to addressing fundamental issues that pose grave threats to our economic prosperity, fiscal stability and public health as a federation. In line with our mandate, we will definitely unravel factors and forces aiding sabotage in our petroleum industry.

 

“From our findings, we will craft a legislative framework that will entrench global best practices in the industry; open it up for more investments, especially in the midstream and downstream sectors and end vicious regimes of subterfuge in the petroleum industry.

 

“We are utterly committed to this mandate. We shall carry it out without fear or favour. We shall be equitable, fair and just to all parties with a view to promoting and protecting the strategic national interests of our fatherland,” Bamidele said.

 

He, therefore, promised that the National Assembly “is ready to carry out the investigative hearing with all sense of honor and responsibility,” citing impeccable professional backgrounds of the members of the committee.

 

Also, at the session, Kyari claimed that NNPCL “is loyal and faithful to the country,” saying its management vowed to protect the interest of Nigeria in the petroleum industry.

 

He observed that most problems in the petroleum industry “have nothing to do with NNPCL. We are faithful and loyal to the economic interest of this country. We are not criminals. We are not thieves. But we will protect our dignity and honour.

 

In his own remarks, Edun said the increase in the crude would stabilise the country’s foreign exchange market while expressing confidence in the leadership of the ad-hoc committee to conduct an unbiased and impartial investigation

…We ‘re not guilty of sabotage —NNPCL, NMDPRA, others

However, Following plans by joint National Assembly investigation on sabotage on the oil sector, the Nigerian National Petroleum Company Limited ( NNPCL) , Nigerian Midstream and Downstream Petroleum Regulatory Authority ( NMDPRA ) and some other critical stakeholders in the Petroleum industry , declared on Wednesday that they should be counted out of any act of economic sabotage in the sector .

 

This is as Dangote Refinery perceived to be at logger heads with NNPCL on seamless operations  , openly stated that 60% of its crude oil is provided  by NNPCL..

 

Rebuttal of alleged economic sabotage was  publicly made by the Minister of State , Petroleum , Senator Heineken Lokpobiri , the Group Chief Executive Officer of NNPCL , Mallam Mele Kyari and the Chief Executive Officer of NMDPRA , Engineer Farouk Ahmed during presentations before Senate Ad – hoc Committee investigating alleged economic sabotage in the Petroleum Industry.

 

Specifically the Minister of State for Petroleum in his remarks at the interactive session the Committee had with stakeholders in the sector , said a lot of misinformation has been churned out to the public on roles being played by his Ministry and other agencies in making it inclusive for interested investors .

 

The planned public hearing by the Committee according to him , would afford Nigerians to know the truth on happenings in the sector .

 

” Please do us a favour by televising the planned investigative hearing on the alleged economic sabotage in the Petroleum Industry live “, he said .

 

In his own remarks , the Group Chief Executive Officer of NNPCL , said the Company owned by over 200million Nigerians should be counted out of any act of sabotage.

 

” We are  faithful, loyal and committed to the greatness of this country. We are not criminals ,  thieves or saboteurs as being alleged through wrong narratives .

 

” NNPCL under our management and  by operational guidelines or relevant provisions  of PIA, CAMA etc , is today a profit making company after about 43 years of loses .

 

” Today from 1.4million barrels it was,  months back , production level , has increased to 1.65million barrels per day and will soon hit the expected 2Million  barrels per day .

 

” There is nothing for NNPCL to sabotage because we are out to maximize value and profits for the country . We are not against any domestic refinery because the laws are clear as far as processes and procedures are concerned.

 

” As requested for by the Hon Minister of State for Petroleum, the planned public hearing on alleged sabotage in the sector , should be televised live , for Nigerians to know the truth of situations on ground “, he said.

 

Similarly the Chief Executive Officer of NMDPRA, Engr Farouk Ahmed in his brief remarks said the planned public hearing should be televised live for Nigerians to know those indulging in the alleged economic sabotage in the sector .

 

” A lot of negative stories and narratives have been written and published against us in NMDPRA on how we are carrying out our regulatory functions without us  telling our own side of the story .

 

” Gratifyingly , the planned public hearing will give us the appropriate platform of laying our facts bare to Nigerians for them to know who is sabotaging who .

 

” The investigation should be public and televised live “, he stressed .

 

In his presentation, the Group Chief  Strategy Officer  of Dangote Refinery , Aliyu Sulaiman , said out of the 5million crude oil they got in recent time , NNPCL gave them 60% , , 20% imported and 20% purchased .

He commended the NNPCL for making the huge supply to Dangote but added that the refinery is a baby that should be supported by all relevant stakeholders to grow and not die .

 

However in his presentation ,a subtle attack was made against Dangote by the National Chairman of Depot and Petroleum Marketers Association of Nigeria ( DAPMAN) Abdulkabir Adisa Aliyu who said Dangote declared N133billion profit on Sugar sales in Nigeria within the last six months .

 

He said such a feat was made possible for Dangote by allowing him monopolise the Sugar business in Nigeria .

 

The Petroleum sector he added, should not be allowed to be monopolised by any person or company , saying ” Monopoly kills business .

 

Similarly , the National President of Independent Petroleum Marketers Association of Nigeria ( IPMAN) , Alhaji Abubakar Shettima in his presentation , loudly admonished the committee against  monopoly in the petroleum sector .

 

” The current value chain in the downstream should be sustained to allow other investors to participate .

 

” NNPCL is doing its best but should please improve on supply of products to retail outlets across the country to end the incessant queue at filling stations “, he said.

 

In his opening remarks, the Chairman of the  Ad – hoc Committee, Senator Micheal Opeyemi Bamidele ( APC Ekiti Central) , said the committee was not out to witch-hunt any body or group of persons but to unravel identities of those sabotaging the petroleum sector .

 

He specifically mentioned the alleged importation of hazardous petroleum products and substandard diesel into Nigeria arising from non functionality of government owned refineries in Nigeria .

 

“In 2021, specifically, the Federal Executive Council approved $1.5 billion for the turn-around maintenance of the Port Harcourt Refinery. Yet, this investment has not yielded  any significant returns.

 

“For us, in the Senate, we believe, it is unfair and unpatriotic to treat government businesses or public corporations as an orphan while private businesses are flourishing and thriving”, he said .

 

The committee has fixed the public hearing for September 10 to 12 , 2024 along with their counterparts from the House of Representatives .

..As Army destroys ‘illegal refineries’ in Rivers, Bayelsa

 

In another development, The Nigerian Army said it’s troops have destroyed several illegal crude oil refining sites in Rivers and Bayelsa States.

 

The Army in Rivers State, disclosed this in a statement issued by the Acting Deputy Director, Public Relations, 6 Division Nigerian Army, Lieutenant Colonel Danjuma Jonah Danjuma, and made available to newsmen in Port Harcourt on Tuesday.

 

Danjuma in the statement said the sites were destroyed during an operation aimed at reducing crude oil theft in the Niger Delta Region, by troops of the Land Component Joint Task Force, South South, Operation DELTA SAFE (OPDS).

 

He said the troops have effectively scaled up operations against the criminal elements in the region.

 

According to him, “In the operations that ensued, troops identified several illegal refining sites in Rivers and Bayelsa States, where several discoveries were made.”

 

He said the discoveries and destruction of the illegal refining sites were made through credible intelligence in both states.

 

“In Rivers State, troops of Sector 3, LC JTF SS OPDS, following credible intelligence identified and successfully destroyed 3 illegal refining sites at Odagwa in Etche Local Government Area (LGA). The operation led to the confiscation and subsequent destruction of over 30,000 litres of stolen and illegally refined products.

 

“Also, at Akaso field down to Cawthorne channel, around Well 9, troops discovered One illegal refining site, 3 receivers and massive connecting pipes traversing the terrain to convey stolen crude to IRS. Other items were also confiscated and destroyed at the sites in line with the mandate of Operation DELTA SAFE in the Niger Delta region.

 

“Similarly, in Bayelsa State, troops of Sector 2, while conducting routine operations in the creeks, waterways and rivulets along Dasaba Creek in Nembe LGA, confiscated over 12,000 litres of stolen and illegally refined products.

 

“Other Items recovered at the IRS include One Fibre Boat, Five Ovens, several metal drums as well as massive reservoirs used as storage facilities for this illegal venture.”

 

Commending troops for the renewed vigour, the General Officer Commanding, GOC, 6 Division, Nigerian Army and Land Component Commander, Major General Jamal Abdussalam charged them to redouble their efforts in denying these criminal elements free of action in the NDR.

 

This he said, would ensure integrity of the pipelines and increase oil production in the region in pursuant of the mandate of OPDS in the region.