The Senate on Tuesday directed the Ministry of Petroleum Resources to halt all transactions relating to the planned concession of the Port Harcourt refinery to Agip and Oando.
The Minister of Petroleum, Ibe Kachikwu, had on May 9 announced that the Nigerian Agip Oil Company, a subsidiary of the Italian oil giant, Eni, had committed to repairing the Port Harcourt refinery, as part of a $15 billion investment that includes building a 150 thousand barrel per day refinery and a power plant.
The plan was aimed at strengthening Nigeria’s drive to end fuel importation by 2019, Mr. Kachikwu said.
But following a motion by Mohammed Sabo, APC-Jigawa, on Tuesday, the Senate expressed worry with the process, allegedly characterized by a lack of clarity, due process and transparency.
The lawmakers who are questioning the rationale behind the planned concession, say the process appears non-transparent and without recourse to due process.
The upper legislative chamber subsequently, set up a seven-man ad-hoc panel to carry out investigations into the selection process.
The committee is expected to submit a report explaining how and why such a deal was sealed and what criteria was used to select Agip/ENI and OANDO Plc to maintain and operate the Port Harcourt Refinery and at what cost and time-frame.