Reps to probe ‘missing’ 5.2 million barrels of crude oil

The House of Representatives has directed its committee on petroleum to investigate the alleged missing 5.2 million barrels of crude oil allocated to local refineries under the Direct Sales Direct Purchase (DSDP).

The decision to undertake the probe followed a motion of urgent public importance moved by Abubakar Makki from Jigawa state during plenary on Wednesday.

Direct Sales Direct Purchase Agreement (DSDP) replaced the Oil Processing Agreement (OPA) in 2016.

DSDP allows sales of crude oil to refiners, who will in turn supply the Nigerian National Petroleum Corporation (NNPC) with an equivalent worth of petroleum products.

The DSDP has allowed NNPC to be the sole importer of refined products.

Motion

Mr Makki, in his motion, said the House should investigate the 5.2 million barrels of crude oil allocated to the local refineries in 2018.

He also questioned the status of the local refineries who refine the products for the NNPC.

Citing NNPC report of 2019, Mr Makki said 5.2 million barrels of crude were unaccounted for in 2018.

He, therefore, called for the probe of DSDP allocation to local refineries from 2018 till date.

“The House needs to investigate 5.2 million barrels supposedly allocated to comatose refineries that were unaccounted for by those in charge,” he said.

The committee has been mandated to investigate the “status of unused stock due to the inadequate capacity of the refineries.”

Also, the committee will investigate the rationale for allocating crude oil to the local refineries.

Controversy

Local refineries in Kaduna, Warri and Port Harcourt have been subjects of investigation by the House, particularly the turn around maintenance of the refineries.

In November 2020, the House resolved to investigate $396.3 million allegedly spent in four years on the turn around maintenance of refineries.

Also, PREMIUM TIMES had reported how the executive is proposing to sell some of the refineries to fund the 2021 budget