Duplication of projects, double payment hinder rehabilitation of refineries – Reps

The House of Representatives ad-hoc Committee on the state of refineries in the country, says after spending N11.349 trillion to rehabilitate the nation’s refineries, it discovered duplication of projects and double payments.

This is sequel to the report of the Committee, chaired by Rep. Ganiyu Johnson. The report was laid and considered by the House of Reps at the plenary in Abuja on Tuesday.

In its recommendation, the committee said, drawing from observations and findings, the committee established that the state of refineries in the country from 2010-2020 was comatose.

The committee said the refineries were non-functional, unproductive and wasteful, adding that it could not ascertain the actual cost of rehabilitating the Nigerian refineries within the periods.

The committee said that obvious omissions were noted in the submissions made by the NNPC, adding that there were seeming duplication of projects and possible double payments.

The committee noted that total estimated cost of rehabilitating the Nigerian refineries may be put at ₦11,349,583,186,313.40, adding that other additional actual costs reported in foreign currencies were to the tune of US$ 592,976,050.00 and £4,877,068.47 and £3,455,656.93.

In its recommendation, the committee said that the NNPCL should take full advantage of the Petroleum Industry Act 2021, passed by the National Assembly, to fast track the rehabilitation programme of the refineries.

It further said that the NNPCL and the contractor, Tecnimont SPA of Italy, be urged to ensure that phase Olone of the rehabilitation works in refinery area five of the Old Port Harcourt refinery.

This, the committee said, was with the processing capacity of 60,000 barrels per day earlier expected to be restored to 54,000 barrels per day of processing capacity, representing 90 per cent capacity utilization by March, 2023.

The committee said this should unfailingly meet the new target date of Sept. 2023, adding that the NNPCL and the contractor be further urged to ensure that phase two of the rehabilitation works in refinery areas 1 and 2 of the New Port Harcourt Refinery (NPHR).

This, according to the committee, should be with an installed capacity of 150,000 Barrels per Day, restored to the estimated processing capacity of 135,000 Barrels per day, representing 90 per cent capacity utilization.

This is to deliver a combined processing capacity of 189,000 barrels per day from the OPHR and the NPHR and achieve the targeted date of December 2023, among other recommendations.