National Assembly questions Nigerian Oil Corporation and senior NNPC officials over refinery collapse
The House of Representatives Ad Hoc Committee on the State of Refineries in Nigeria on Friday questioned senior officials of the Nigerian National Petroleum Company Limited (NNPC) on the state of four refineries.
NNPC informed the committee that the ongoing rehabilitation of the Port Harcourt refinery would be completed by March 2023.
According to the Group Managing Director, NNPC, Mele Kyari, the rehabilitation, whose contract was awarded on May 6, 2021, had reached a level of completion of 30%.
He added that part of the project would be delivered within 32 months, but the whole project had to be completed within 42 months.
Kyari, who was represented by Group General Manager, Refineries & Petrochemicals, Mustapha Yakubu, however revealed that the contracts to rehabilitate the Warri and Kaduna refineries had not been awarded.
Little drama at the investigative hearing on the cost of a new refinery with a production capacity of 150,000 barrels per day.
The committee sought Federal Executive Council approval of $1.5 billion for the Port Harcourt refinery, approval of miscellaneous expenditures incurred on July 26, 2017, worth $5.321 million for plans full technical, plus an additional $55 million paid the same day. .
The committee has engaged engineering firm Sapien to manage the contract for the $1.3bn refinery rehabilitation exercise and an additional £2.3m for inspection of the Warri refineries and Kaduna.
After reviewing documents submitted by NNPC to the committee, lawmakers observed that similar contracts for the three refineries were awarded to another company (Technomont) in 2019.
Port Harcourt refinery managing director Ahmed Dikko revealed that the full conversion plant would cost $4.5 billion and be completed within five years.
However, lawmakers said they observed that the same project would cost America $90 million.