House Committee says indigenous oil coys must flourish in lifting crude

Crude-Oil - exports

The House of Representatives Adhoc Committee on Review of Pump Price of Petrol on Friday expressed dissatisfaction with the allocation ceded to Master Energy Oil & Gas Ltd in the lifting of crude.

The Chairman of the Committee, Raphael Igbokwe, made the remark on the sidelines of the committee’s visit to Master Energy Oil and Gas Ltd.

Igbokwe said that there was the need to encourage indigenous companies to flourish, especially those that were listed in the lifting of crude.

He said the committee was looking into having more indigenous companies engaging in indirect sales and direct purchase with the government rather than foreign companies.

“The committee is worried over fewer jobs that are given to indigenous operators because such operation does not give room for scale transfer which is a very strong policy stand of government and the parliament of Nigeria.

“We have to get clarification on some number of petrol (PMS) imports and the distribution of those products.

“We have seen from your records which you have produced which are majorly from your direct import and purchases.

“We are moving into the second stage of looking at your purchases from the government agencies; that is the PPMS and its subsidiaries.

“We will be looking at your throughput arrangement with those agencies and as well as strategic partnership with the view of straightening collaboration to ease supply and distribution of PMS in
the system.

“Hoping that at every material time that both parties will be living up to the terms of agreement,” the News Agency of Nigeria (NAN) quotes Igbokwe as saying.

He said that the committee’s visit would be a continous engagement until “the committee is able to tackle the issue relating to price template as it relates to Master Energy Oil and Gas Ltd operation in the

The committee’s chairman said that Nigerians were having challenges as the activities of government agencies in the downstream had not been able to bring enough petrol to wet the land.

He said that the volume of petrol coming into the country under the arrangement of direct import and purchase had not been coming into the country as and when due.

Igbokwe said that paramilitary investigation showed that quantity of petrol coming into the country was below the expected quantity.

He said that part of the committee’s visit was to find out the deficiencies, adding that marketers were diverting some Forex being released to them for something else rather than what they were specified for.

Igbokwe said that the committee would ensure that all the players in the supply chain of petrol from jetties, storage fees and others, add value to the value chain.

He said that the committee was also looking for ways to eradicate fuel scarcity in the country by removing inefficiency in the operations.

In his response, Vincent Ajala, Vice Chairman/Group Chief Executive, Master Energy Group, urged the committee to investigate the issue of Nigerians not able to have petrol at the right time.

Ajala said that inaccessibility of foreign exchange was affecting the operation of oil and gas companies.

He said that oil and gas marketers had to pay for some service which was meant to be paid in naira in dollars.

Ajala urged government to review the petrol template to sustain oil marketers in the business.


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