The Senate on Tuesday called for the suspension of concession of Port Harcourt Refinery to Agip/ENI in partnership with OANDO by Ministry of Petroleum.
The Senate hinged the decision to suspend the concession as result of motion sponsored by Senator Sabo Mohammed.
The motion was tagged: “Non transparent transactions relating to the planned Concession of the Port Harcourt Refinery to Agip and Oando by the Ministry of Petroleum Resources.”
Sabo accused the Ministry of shady deal in the concession of the Refinery to AGIP and OandO.
Meanwhile, the Senate has set up an adhoc Committee to probe the concession of the refinery to affected company.
Members of the Committee are Senator Abubakar Kyari (Chairman), Benjam Uwajumogu (Vice Chairman), Senator Dino Melaye, Senator Sabo Mohammed, Senator Aliyu Wammako, Senator Matthew Uroghide and Senator Duro Faseyi
Leading debate on the motion, Senator Sabo informed the lawmakers that Federal Government had recently entered into agreement with Agip to construct a refinery in the Niger Delta in a deal of about $15 billion.
He said: “The Federal Government recently entered into an agreement with Nigerian Agip Oil Company, a subsidiary of ENI, an Italian oil giant, to construct a $15 billion refinery in the Niger Delta region, a deal which also includes investment by Agip in a power plant with the Italian company assisting Nigeria in the repairs of the Port Harcourt refinery.
“The Minister of State for Petroleum Resources stated that the agreement was part of a broader Federal Government plan to increase capacity for local production and consumption of petroleum products with the aim of ending fuel importation in Nigeria by 2019.
“While the resolve by the Federal Government to increase local refining capacity is laudable and should be applauded by all Nigerians, the observance of corporate governance principles and the country’s extant laws must be followed to the letter.
“The confusion became obvious following the disclosure on May 11, 2017 by the Chief Executive Officer of Oando Plc on the floor of the Nigeria Stock Exchange that the group had received approval of the Federal Government to repair, operate and maintain the Port Harcourt Refinery Company with their partner, Agip.
“This development would have been wonderful because it would mean an end to importation of refined products by the year 2020, but many questions are begging for answers, such as: is it Agip/ENI or Oando Plc that is taking over Port Harcourt Refinery?
“Was there the observance of the privatisation law as regards due diligence, selection from preferred bidders before ceding of the Port Harcourt Refinery to Agip/Oando?”
After exhaustive debate on the motion, the Senate President, Dr. Abubakar Bukola Saraki, put motion to voice vote and the two prayers were adopted by the Senate.