SAN FRANCISCO, May 30, (THEWILL) – The Nigerian Senate on Tuesday directed the Ministry of Petroleum Resources and the minister of state in the ministry, Ibe Kachikwu, to immediately stop all processes relating to the planned concession of the Port Harcourt Refinery to Agip and Oando Plc.
The upper legislative chamber also set up an ad hoc committee to carry out an investigation to determine how and why such a deal was sealed and the criteria used to select Agip/Eni and Oando Plc to maintain and operate the refinery, and at what cost and the time frame involved.
These decisions was taken following the consideration of a motion by the senator representing Jigawa south, Sabo Mohammed, who had said: “The federal government recently entered into an agreement with Nigerian Agip Oil Company (NAOC), a subsidiary of ENI, an Italian oil giant to construct a $15 billion refinery in the Niger Delta region, a deal which also includes investment by Agip in a power plant with the Italian company assisting Nigeria in the repairs of the Port Harcourt refinery.
“The minister of state for petroleum resources stated that the agreement was part of a broader federal government plan to increase capacity for local production and consumption of petroleum products with the aim of ending fuel importation in Nigeria by 2019.
“While the resolve by the federal government to increase local refining capacity is laudable and should be applauded by all Nigerians, the observance of corporate governance principles and the country’s extant laws must be followed to the letter.”
The sponsor of the motion pointed out that it was not also clear when Oando became part of the deal, adding that “the confusion became obvious following the disclosure on May 11, 2017, by the chief executive officer of Oando Plc on the floor of the Nigeria Stock Exchange that the group had received approval of the Federal Government to repair, operate and maintain the Port Harcourt Refinery Company with their partner Agip.
“This development would have been wonderful because it would mean an end to importation of refined products by the year 2020, but many questions are begging for answers, such as is it Agip/ENI or Oando Plc that is taking over Port Harcourt Refinery?
“Was there the observance of the privatisation law as regards due diligence, selection from preferred bidders before ceding of the Port Harcourt Refinery to Agip/Oando?
Mohammed said that it was sad that the Port Harcourt, Warri and Kaduna refineries were not producing up to 50 percent after lbe Kachukwu had promised that they would be producing at 90 percent by the end of 2015.
The senators, who expressed worry with the process that led to the concession, adopted the motion after it was put to a voice vote by the Senate President, Bukola Saraki.
THEWILL recalls that Kachikwu had, on May 9, announced that the Nigerian Agip Oil Company, a subsidiary of the Italian oil giant, Eni, had committed to repairing the Port Harcourt refinery, as part of a $15 billion investment that includes building a 150 thousand barrels per day refinery and a power plant.
The minister then explained that the plan was aimed at strengthening Nigeria’s drive to end fuel importation by 2019.
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