- Says It Will Investigate Non-Supply Of Crude To Dangote Refinery, Importation Of Dirty Fuel, Others
By The New Diplomat Political Desk
The House of Representatives has commenced investigations into the face-off between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Dangote Refinery owned by Africa’s richest man, Aliko Dangote.
A joint petroleum committee on the Midstream and Downstream sectors have been saddled with the task of looking into the allegations and counter-allegations exchanges between Dangote and the Chief executive Officer of the NMDPRA, Farouk Ahmed.
The Joint Investigative Committee is chaired by Hon. Ikenga Imo Ugochinyere (Downstream) with support from Hon. Henry Okojie (Midstream). The committee held its inaugural meeting on Monday and was declared open by the Deputy Speaker Rt. Hon. Benjamin Okezie Kalu.
In his address, Kalu urged his colleagues as well as all stakeholders to provide comprehensive support, including essential information and documentation to help advance the committee’s work.
The Deputy Speaker also charged the committee to uphold the esteemed principles of transparency, fairness, justice, and professionalism in carrying out its responsibilities.
In his response, the Chairman of the joint Committee, Ugochinyere outlined how the investigation will proceed in phases, starting with the investigation of allegations of local production and importation of substandard petroleum products, as well as critical issues of crude oil non-availability to refineries and the circumstances surrounding it.
He also explained that the committee has identified 30 key items for investigation as directed by the House but would initially focus on two primary concerns.
He said: “To ensure a thorough examination, the committee plans to: Conduct laboratory investigations at all local refineries, marketer and importer facilities, and regulatory agency labs such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Visit various filling stations of different marketers, importers’ depots, and other relevant sites to collect samples for analysis.
“These samples will be examined in their labs, and also in alternative private independent labs to ascertain sulfur levels and other critical components.
“The committee will hire an internationally certified lab and where possible conduct live testing of all imported and locally produced products to help resolve the issues. The results of such testing on all imported and produced petroleum products will be announced publicly.
“The committee affirmed that apart from finding a final solution to the alleged embarrassing issue of non-availability of crude supply to domestic refiners both modular and big refiners, the findings will stretch to crude produced and the quantity that ought to go to local refiners and the reasons for falling short, the impact of crude forward sales on availability of crude to domestic refiners and other issues.”
He also disclosed that letters of invitation for paper submissions and appearances have already been dispatched to key stakeholders, including the Minister for Petroleum (Oil), the management of NNPCL, the GCEO Mele Kyari, Executive Vice President Downstream, and Authority Chief Executive of NMDPRA, Operations Officers, and their lab heads or testing partners.
Others include IPMAN, PETROAN, NUPRC, independent oil producers, international oil companies (IOCs), importers, marketers, and depot owners.
The New Diplomat reports that Dangote’s 650,000 barrel-per-day refinery, which became operational last year after a decade-long construction period, has been facing significant challenges, including supply chain issues and regulatory disputes.
It would be recalled that the crisis became public knowledge after the Vice President of Oil and Gas at Dangote Group, Devakumar Edwin, accused the NMDPRA of allowing marketers to import substandard fuel.
Edwin had also accused International Oil Companies of refusing to sell crude oil to the Dangote refinery, adding that the company buys crude from IOCs at $6 above the market price.
However, the Chief executive of the NMDPRA, Farouk Ahmed, countered that diesel from Dangote’s plant contained high levels of sulphur, harmful to engines and the environment.
Ahmed had also said that Nigeria cannot depend on products from the Dangote refinery, revealing that products from the 650,000 barrels refinery are inferior and substandard in quality.
In response, Dangote invited members of the House of Representatives on a tour of the refinery and witness lab tests and make comparison between the sulphur content of its diesel with imported samples.
According to Dangote, the tests revealed that Dangote’s diesel had a sulphur content of 87.6 ppm, significantly lower than the imported samples, which had levels exceeding 1800 ppm and 2000 ppm.
Dangote explained that the result does not only show the reality of products from his refinery, but it also shows that substandard petroleum products are being imported into the country and sold to unsuspecting Nigerians.
