Reps to probe funds on P/H refinery repairs | Dailytrust

Reps to probe funds on P/H refinery repairs

The House of Representatives

The House of Representatives has mandated its Committee on Petroleum Resources Downstream to conduct a public hearing and an audit of funds spent on the previous rehabilitation, repairs and maintenance of the Port Harcourt refinery.

It is to also examine performance bond, assurances, warranties and guarantees for operating and maintaining the refineries after commissioning.

The resolution came after a motion on a matter of urgent public importance by Rep Onofiok Luke during plenary on Wednesday.

He said the Nigerian National Petroleum Corporation (NNPC) had allegedly spent $25 billion in turnaround maintenance of refineries in the last 25 years, noting that the latest proposed $1.5bn for the repair of Port Harcourt refinery is coming after promises by the present administration that government would not spend anything on the refineries again.

“Previous rehabilitations notwithstanding, the NNPC audit report had last year revealed that three of the country’s refineries recorded N1.64 trillion cumulative losses in their 2014 to 2018 details.

“Despite processing no crude oil in June last year, the three refineries still cost the country N10.23bn in expenses,” he said.

Onofiok also said that within the same timeframe, major structural works and construction on 650,000 barrels per day Dangote refinery began in 2017 and partial refining capacity likely in 2022.

“The same lag period of rehabilitation would be carried out on the 210,000 BPD Port Harcourt refinery.

“The voice of the National Assembly must be recorded to ensure judicious use of the proposed $1.5bn, considering the fact that the facility has failed to perform after years of rehabilitation, repairs, maintenance,” he said.

The House, therefore, called on the federal government “to grant licence and provide incentives for the building and construction of modular refineries.’’

It mandated its Committee on Compliance to ensure compliance with the resolution.