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Refineries Probe: Reps Kick As Kyari Keeps Mum On Oil Swap Deal

Published

2 years ago

May 11, 2022

Editor

THE Group Managing Director of the Nigerian National Petroleum Company Limited, Mele Kyari, on Tuesday, finally appeared before the House of Representatives’ Ad Hoc Committee on the State of Refineries in Nigeria.

However, Kyari could not answer some of the critical questions posed to him by members of the committee, urging the lawmakers to allow him to come back with documents containing the details.

The details sought by the lawmakers include the actual cost of rehabilitating the refineries, especially the Port Harcourt Refining Company.

This is just as the committee and the GMD failed to disclose the quantity of crude being taken from Nigeria and the volume of petroleum products being delivered to the country on a daily basis, under the Direct Sale Direct Purchase or oil swap deal with firms.

In his presentation, Kyari said, “We recognise that today, none of our refineries are operating for a very obvious reason that I am sure, through the work of this committee, you will find out why they are not operating today. We will hide nothing from you. We will also tell you where we are as we speak.

“Needless is to say that the refineries were essentially not properly managed over time, not just today but in the last 20 to 25 years. The turnaround maintenance processes were clearly mismanaged over time. We clearly admit that those turnaround maintenances were not properly done in the past, leading to where we are.

“When we took over, it is very obvious that what you are dealing with is not turnaround maintenance; you are dealing with a total rehabilitation. The refineries were clearly in situations where ordinary turnaround maintenance would not solve the problem. We have degradation of a monumental proportion that we met. And of course, the only way you can do this is to conduct full turnaround maintenance.”

Kyari also noted that the refineries were shut down as the country was running at a loss using them. He also said the NNPC shopped for “the best of class” contractors to rehabilitate the facilities.

He said, “We did not abridge any process. We took through all the necessary processes of governance to make sure that we have the right contractor in place. And I am happy today that at the end of that exercise that we have put in place, the Federal Executive Council has approved a contractor for the Port Harcourt refinery, the Kaduna refinery and the Warri refinery.

“Even when you rehabilitate the refineries, you must have the pipelines. As we speak now, the pipeline from Escravos, which will feed the Warri refinery and ultimately the Kaduna refinery cannot carry the two refineries as we speak now. This is for many reasons; one is the act of vandals.

“Needless is to say that the rehabilitation work must also be complemented with the replacement of the pipeline network. We are also working on this. It is a very critical component of what we are doing.”

The GMD also noted that the rehabilitation projects would be financed by banks, different from the previous efforts which were frustrated by funding challenges.

A member of the committee, Olanrewaju Edun, however, said Kyari did not speak to the document the NNPC presented to the panel, noting that what the GMD said was not captured in the written presentation.

Responding, Kyari said the committee should adopt his oral presentation also. “We have nothing to hide, that is why I said everything I could remember,” he said. Other members of the committee, however, insisted on getting the details demanded from the NNPC.

Another member, Ayokunle Isiaka, asked if the NNPC was changing the entire structure and systems of the refineries or changing some specific parts. He demanded an asset valuation report on the refineries. He also asked how refined products would be transported from the refineries when they become functional to the depots for onward distribution.

Chairman of the committee, Ganiyu Johnson also said, “It is very important for you to tell us the actual cost of this (Port Harcourt refinery rehabilitation) contract. If there are fluctuations (variations), the original contract sum, we should know.”

Responding, the GMD said, “Chairman, I didn’t say I did not have answers to all the questions but it is very obvious that we did not respond to all the questions – the requests – that this honourable committee asked us to do. If we had done so, many of the questions that were asked today wouldn’t have come up in the first instance. That is why I said give me the grace so that I can respond to all the submissions that you have requested and I would clearly come back to you as you directed.

“Secondly, we know the contract sum. We are hiding nothing from you. There is no variation on this contract. If you look at the document I submitted to you, you will see the approval is for $1.559bn including VAT. So, there is no question that we do not have an answer to. I don’t have all the details; I will not be able to have all the details, definitely.”

Johnson also asked, “What is the quantity of crude oil given out per day under the DSDP programme to refiners outside this country? Two, what is the quantity of PMS received per day in exchange for the quantity of crude oil swap?”

Responding, Kyari said, “Definitely, these are very specific numbers and there is no way I can give you a number on these, at this moment. First, let me tell you the principle around this. I know today, how much PMS we have in the country. I know we have up to 2.8 billion litres of PMS in the country at this moment, sufficient to keep us for 47 days if we don’t import.

“This is the basic information that I know. And all the PMS don’t come in equal volumes every day. Some days you can receive cargo and for three days may not receive cargo, and you can also receive up to four cargoes in a day. This is market-determined, supply-determined; you cannot give the volume for every day but we have data for every volume of PMS.”

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JUST IN: Helicopter Carrying Iran’s President Crashes

Published

1 hour ago

May 19, 2024

Editor

A helicopter carrying Iranian President Ebrahim Raisi has been involved in an incident while he was visiting neighboring Azerbaijan, Iran’s semi-official Tasnim news agency reports.

“Some of the president’s companions on this helicopter were able to communicate with Central Headquarters, raising hopes that the incident could have ended without casualties,” it added.

It is unclear what the exact status is of Raisi’s helicopter.

The helicopter was part of a convoy of three helicopters. Two of those helicopters were carrying ministers and officials who arrived at their destination safely, according to Tasnim.

“Seyyed Mohammad-Ali Al-Hashem, Tabriz’s Friday Prayer Imam, and Foreign Minister Hossein Amirabdollahian were also reportedly on the helicopter with the president,” Tasnim said on X.

More Details Later…

Headline

Iran Hangs 53-year-old Woman, Six Others

Published

21 hours ago

May 18, 2024

Editor

Iran on Saturday hanged at least seven people, including two women, while a member of its Jewish minority is at imminent risk of execution as the Islamic Republic further intensified its use of capital punishment, an NGO said.

Parvin Mousavi, 53, a mother of two grown-up children, was hanged in Urmia prison in northwestern Iran along with five men convicted in various drug-related cases, the Norway-based Iran Human Rights (IHR) said in a statement.

In Nishapur in eastern Iran, a 27-year-old woman named Fatemeh Abdullahi was hanged on charges of murdering her husband, who was also her cousin, it said.

IHR says it has tallied at least 223 executions this year, with at least 50 so far in May alone. A new surge began following the end of Persian New Year and Ramadan holidays in April, with 115 people including six women hanged since then, it said.

Iran carries out more recorded executions of women than any other country. Activists say many such convicts are victims of forced or abusive marriages.

Iran last year carried out more hangings than in any year since 2015, according to NGOs, which accuse the Islamic republic of using capital punishment as a means to instill fear in the wake of protests that erupted in autumn 2022.

“The silence of the international community is unacceptable,” IHR director Mahmood Amiry-Moghaddam told AFP.

“Those executed belong to the poor and marginalised groups of Iranian society and didn’t have fair trials with due process.”

‘Killing machine’

IHR said Mousavi had been in prison for four years. It cited a source as saying she had been paid the equivalent of 15 euros to carry a package she had been told contained medicine but was in fact five kilos of morphine.

“They are the low-cost victims of the Islamic Republic’s killing machine, which aims at instilling fear among people to prevent new protests,” added Amiry-Moghaddam.

The group meanwhile said a member of Iran’s Jewish community, which has drastically reduced in numbers in recent years but is still the largest in the Middle East outside Israel, was at imminent risk of execution over a murder charge.

Arvin Ghahremani, 20, was convicted of murder during a street fight when he was 18 and is scheduled to be executed in the western city of Kermanshah on Monday, it said, adding it had received an audio message from his mother Sonia Saadati asking for his life to be spared.

His family is seeking to ask the family of the victim to forgo the execution in line with Iran’s Islamic law of retribution, or qesas.

Also at risk of execution is Kamran Sheikheh, the last surviving member of a group of seven Iranian Kurdish men who were first arrested between early December 2009 and late January 2010 and later sentenced to death for “corruption on earth” over alleged membership of extremist groups, it said.

Six men convicted in the same case have been executed in the last months almost one-and-a-half decades after their initial arrest, the last being Khosro Besharat who was hanged in Ghezel Hesar prison outside Tehran this week.

There has been an international outcry meanwhile over the death sentence handed out last month to Iranian rapper Toomaj Salehi, seen by activists as retaliation for his music backing the 2022 protests. His lawyers are appealing the verdict.

AFP

Headline

Israeli Leaders Disagree Over Post-war Gaza Governance Amid US Pressure

Published

21 hours ago

May 18, 2024

Editor

New divisions have emerged among Israel’s leaders over post-war Gaza’s governance, with an unexpected Hamas fightback in parts of the Palestinian territory piling pressure on Prime Minister Benjamin Netanyahu.

The Israeli army has been battling Hamas militants across Gaza for more than seven months while also exchanging near-daily fire with Iran-backed Hezbollah forces along the northern border with Lebanon.

But after Hamas fighters regrouped in northern Gaza, where Israel previously said the group had been neutralised, broad splits emerged in the Israeli war cabinet in recent days.

Netanyahu came under personal attack from Defence Minister Yoav Gallant for failing to rule out an Israeli government in Gaza after the war.

The Israeli premier’s outright rejection of post-war Palestinian leadership in Gaza has broken a rift among top politicians wide open and frustrated relations with top ally the United States.

Experts say the lack of clarity only serves to benefit Hamas, whose leader has insisted no new authority can be established in the territory without its involvement.

“Without an alternative to fill the vacuum, Hamas will continue to grow,” International Crisis Group analyst Mairav Zonszein told AFP.

Emmanuel Navon, a lecturer at Tel Aviv University, echoed this sentiment.

“If only Hamas is left in Gaza, of course they are going to appear here and there and the Israeli army will be forced to chase them around,” said Navon.

“Either you establish an Israeli military government or an Arab-led government.”

US pressure

Gallant said in a televised address on Wednesday: “I call on Prime Minister Benjamin Netanyahu to make a decision and declare that Israel will not establish civilian control over the Gaza strip.”

The premier’s war planning also came under recent attack by army chief Herzi Halevi as well as top Shin Bet security agency officials, according to Israeli media reports.

Netanyahu is also under pressure from Washington to swiftly bring an end to the conflict and avoid being mired in a long counterinsurgency campaign.

Washington has previously called for a “revitalised” form of the Palestinian Authority to govern Gaza after the war.

But Netanyahu has rejected any role for the PA in post-war Gaza, saying Thursday that it “supports terror, educates terror, finances terror”.

Instead, Netanyahu has clung to his steadfast aim of “eliminating” Hamas, asserting that “there’s no alternative to military victory”.

Experts say confidence in Netanyahu is running thin.

“With Gallant’s criticism of Netanyahu’s failure to plan for the day after in terms of governing Gaza, some real fissures are beginning to emerge in the Israeli war cabinet,” Colin P. Clarke, director of policy and research at the Soufan Group think tank, wrote on X, formerly Twitter.

“I’m not sure I know of many people, including the most ardent Israel supporters, who have confidence in Bibi,” he said, using Netanyahu’s nickname.

Hostage ‘impasse’

The Gaza war broke out after Hamas’s attack on southern Israel which resulted in the deaths of more than 1,170 people, mostly civilians, according to an AFP tally of Israeli official figures.

The militants also seized about 250 hostages, 125 of whom Israel estimates remain in Gaza, including 37 the military says are dead.

Israel’s military retaliation has killed at least 35,386 people, mostly civilians, according to the Hamas-run Gaza’s health ministry, and an Israeli siege has brought dire food shortages and the threat of famine.

Many Israelis supported Netanyahu’s blunt goals to seek revenge on Hamas in the aftermath of the October 7 attack.

But now, hopes have faded for the return of the hostages and patience in Netanyahu may be running out, experts said.

On Friday, the army announced it had recovered bodies of three hostages who were killed during the October 7 attack.

After Israeli forces entered the far southern city of Rafah, where more than a million displaced Gazans were sheltering, talks mediated by Egypt, the United States and Qatar to release the hostages have ground to a standstill.

“The hostage deal is at a total impasse — you can no longer provide the appearance of progress,” said Zonszein of the International Crisis Group.

“Plus the breakdown with the US and the fact that Egypt has refused to pass aid through Rafah — all those things are coming to a head.”