SENATE PROBES NNPC OVER $396M SPENT ON TURN AROUND MAINTENANCE

SENATE PROBES NNPC OVER $396M SPENT ON TURN AROUND MAINTENANCE

SENATE PROBES NNPC OVER $396M SPENT ON TURN AROUND MAINTENANCE

The Nigerian Senate on Thursday resolved to probe the Nigerian National Petroleum Corporation (NNPC) over $396m spent on Turn-Around maintenance of refineries in the country between 2013 and 2015.

The Senate also mandated the Committee on Petroleum Downstream, Upstream and Gas to carry out a holistic investigation on the expenditures and the current state of the refineries as well as convene a stakeholder’s conference with the purpose of finding ways to renovate them.

The decision to investigate spendings on maintenance of refineries by the corporation was reached after consideration of a motion brought to the floor by Senator Yusuf A. Yusuf (APC, Taraba Central).

Yusuf noted that the NNPC has four refineries: two in Port-Harcourt (PHRC) and one each in Kaduna (KRPC) and Warri (WRPC).

He said the refineries were established to adequately supply and serve needs for Liquefied Petroleum Gas (LPG), Premium Motor Spirit (PMS), Dual Purpose Kerosene (DPK), Automotive Gas Oil (AGO), Low Pour Fuel Oil (LPFO), High Pour Fuel Oil (HPFO) and Aviation Turbine Kerosene (ATK) for both local consumption and exports.

“The country through NNPC has in the past 25 years spent billions of US dollars in maintenance of the refineries, the latest being over $396m spent between 2013 and 2015 without meaningful result”, the Senator said.

“The refineries have remained in waning state in the last 15-20 years and are almost reaching total collapse due to lack of proper maintenance of the facilities with a poor average capacity utilization hovering between fifteen per cent and twenty-five per cent per annum.

Despite the huge spending on turn-around maintenance of refineries, NNPC recently announced a cumulative loss of N123.25bn in 10 months (January to October, 2019), putting the total revenue of facilities at N68.82bn, while total expenses incurred was N192.1bn within the same period.

“Such huge wastage and slippages amidst the nation’s tight economy, if not addressed, may lead the country back to recession”, he opined.

 

SAHARA REPORTERS