House of Reps indicts NNPC, other parties

By Joshua Amaugo November 13, 2015 13:21

House of Reps indicts NNPC, other parties

The House of Representatives Ad hoc Committee on Refined Products Exchange Agreement/Crude Oil Swap has raised alarm claiming the National Petroleum Corporation, NNPC, Crude Oil Division and Pipeline and Products Marketing Company, PPMC, are trying to subvert its ongoing investigation into the operations of the swap agreement with oil traders.

Committee Chairman, Zakari Mohammed said six agencies were invited to provide important documents and make submissions to the committee, and that while three of them complied, the NNPC, its crude oil division, and PPMC were yet to do so.

      “As a House, we want to expose these people who have taken monies that do not belong to them, return them to the coffers of government…we are talking of billions of Naira loss.

“We want to use this medium to send a message to the Minister of Petroleum and the Minister of State for Petroleum, that the most talked about change has not been effected in the NNPC, the rot is still there because what we have witnessed in the last few days is a clear case of irresponsible behavior for those who should have the figures and facts to aid this investigation.”

The Ad hoc Committee on Refined Products Exchange Agreement/Crude Oil Swap was set up following a motion sponsored in June 2015 by Michael Enyong representing Akwa Ibom PDP, who alleged that the country has lost huge amount of money, from the oil traders involved in the crude oil swaps and Offshore Shore Processing Agreements, OPAs.

During a debate in June on the swap deals, Enyong had briefed the House that Sahara Group received 90,000 barrels per day through an arrangement with Societie Ivorienne De Refinage, Aitero received 90,000 barrels, while Ontario Oil received 30,000 barrels among others.

      “Further aware that while one barrel of crude equals to 159 litres, the 445,000 barrels awarded to the above companies per day, when multiplied by 159 litres, will amount to 70,755,000 litres per day, whereas Nigeria consumes only 40,000 litres per day.

“This is why we have called to brief you, so that you know what is going on, even though we have met about six times already,” Mohammed said.

There are also allegations that the oil traders under-delivered petroleum products to the PPMC, the NNPC subsidiary responsible for taking delivery of the products after crude oil has been lifted by the traders.