Reps Committee to Boost Monitoring of Nigeria's Midstream Oil Sector

The House of Representatives Committee on Petroleum Resources (Midstream) has shared plans to strengthen its oversight of Nigeria's midstream oil and gas industry. This move aims to closely monitor operators and regulatory agencies. The goal is to improve energy security, develop domestic gas, and promote transparency in the sector.

The committee's decision came after retreats in Port Harcourt and Lagos. During these meetings, lawmakers looked at the state of the industry and discussed the challenges affecting operations. They also explored ways to enhance their oversight under the Petroleum Industry Act (PIA).

The House Committee on Petroleum Resources (Midstream) was set up after the Petroleum Industry Act was signed into law in 2021. This sector covers gas processing facilities, transportation networks, storage systems, terminals, pipelines, and wholesale distribution.

Odianosen Okojie (APC, Edo), the committee chairman, spoke about the discussions. He said lawmakers would take a more hands-on approach to oversight. They plan to engage directly with industry operators instead of just relying on official reports.

He explained that seeing the facilities and operations firsthand is crucial for lawmakers to understand the real challenges in the sector. "We expect Greenville’s full cooperation, and we look forward to deepening our engagement with a company that is doing genuinely pioneering work in Nigeria’s domestic gas distribution landscape," he said.

As part of their efforts, committee members visited facilities run by Greenville Liquefied Natural Gas (LNG) Company Limited in Rumuji and Indorama Petrochemicals Limited in Rivers State. They also took part in discussions about regulation, compliance, and industry performance.

Mr Okojie mentioned that the committee plans to inspect Greenville LNG again after reviewing documents from the company. He said this follow-up visit would help lawmakers assess the company’s operations and compliance before making conclusions about its activities.

He described Greenville LNG as a key player in expanding domestic gas distribution. He expressed confidence that the company’s management would work well with the committee’s ongoing review.

The lawmakers also praised Indorama Petrochemicals Limited, passing a vote of confidence in the company after their discussions. Mr Okojie said this decision reflects the company’s support for Nigeria’s petrochemical industry and its openness during the oversight.

He added that oversight should not just focus on problems but also recognize companies that show professionalism, transparency, and operational excellence.

At the Lagos retreat, discussions highlighted the importance of the midstream segment of the petroleum industry. It connects crude oil and gas production with consumption by industries, businesses, and households.

Experts at the meeting pointed out several obstacles to the sector's growth. These include poor infrastructure, security threats to pipelines, regulatory issues, tariff concerns, vandalism, and slow progress in using domestic gas.

"The midstream petroleum sector is the indispensable bridge of the oil and gas value chain. It connects production at the wellhead to the markets, homes, and industries that depend on energy," the experts stated.

Participants noted that solving these challenges is crucial for improving energy access, industrial growth, and the supply of petroleum products across Nigeria.

The committee also commended Pipeline Infrastructure Nigeria Limited (PINL) for its role in protecting oil and gas infrastructure. Mr Okojie praised the company for its efforts in pipeline surveillance, maintenance, and security. This work helps to protect important assets and supports steady crude oil production.

He also noted that beyond protecting infrastructure, PINL has created jobs for youths in the Niger Delta and other areas while using technology to improve efficiency.

The lawmaker called the company’s efforts commendable and urged it to keep supporting the industry. "PINL is largely responsible for the protection and maintenance of oil and gas facilities over the years and this has helped to keep crude oil production steady and stable," he said.

Throughout the retreats, lawmakers stressed the importance of implementing the Petroleum Industry Act. This act restructured Nigeria’s oil and gas industry and set separate rules for the midstream and downstream sectors.

Mr Okojie said the committee’s oversight would focus on measurable outcomes, not just procedures. He pointed out that Nigerians judge the sector based on cooking gas prices, energy supply reliability, and the performance of industries that rely on petroleum resources.

He promised that the committee would keep a close watch on both operators and regulators. They aim to encourage investments that will boost growth and improve services.

According to him, regulatory agencies will be held accountable and transparent. Companies in the industry must also follow the rules and obligations set out.

After the Port Harcourt retreat, the committee released a communiqué. It reaffirmed its duty to oversee the sector and promised to turn the retreat outcomes into real legislative actions.

The lawmakers also called on regulators, investors, host communities, operators, and civil society groups to work together with the National Assembly. This is to build a more transparent, efficient, and investment-friendly midstream petroleum industry.