Reps panel to intensify oversight of midstream petroleum sector, targets improved accountability

The House of Representatives Committee on Petroleum Resources (Midstream) has announced plans to strengthen legislative oversight of Nigeria’s midstream oil and gas industry, signalling tougher scrutiny of operators and regulatory agencies to boost energy security, domestic gas development and transparency across the sector.

The committee’s position followed separate retreats held in Port Harcourt and Lagos, where lawmakers reviewed developments in the industry, assessed challenges affecting operations and explored ways to enhance parliamentary oversight under the Petroleum Industry Act (PIA).

The House Committee on Petroleum Resources (Midstream) was established following the enactment of the Petroleum Industry Act in 2021. The sector under its supervision includes gas processing facilities, transportation networks, storage infrastructure, terminals, pipelines and wholesale distribution systems.

Speaking on the outcome of the engagements, the committee chairman, Odianosen Okojie (APC, Edo), said lawmakers would adopt a more practical approach to oversight by engaging directly with industry operators rather than relying solely on official reports and presentations.

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According to him, firsthand assessment of facilities and operations is necessary for legislators to gain a clearer understanding of the realities confronting 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 the exercise, members of the committee visited facilities operated by Greenville Liquefied Natural Gas (LNG) Company Limited in Rumuji and Indorama Petrochemicals Limited in Rivers State before participating in deliberations on regulation, compliance and industry performance.

Mr Okojie said the committee had resolved to undertake another inspection of Greenville LNG after reviewing documents requested from the company.

He explained that the follow-up visit would enable lawmakers to further assess the company’s operational processes and compliance obligations before reaching conclusions on its activities.

The lawmaker described Greenville LNG as one of the companies contributing to the expansion of domestic gas distribution and expressed confidence that management would cooperate fully with the committee’s ongoing review.

The committee also endorsed the performance of Indorama Petrochemicals Limited, passing a vote of confidence in the company following its engagement with lawmakers during the oversight exercise.

Mr Okojie said the decision reflected the company’s role in supporting Nigeria’s petrochemical industry and its openness during interactions with the committee.

According to him, legislative oversight should not be limited to identifying shortcomings but should also recognise organisations demonstrating high standards of professionalism, transparency and operational excellence.

Discussions at the Lagos retreat focused on the strategic importance of the midstream segment of the petroleum industry, which serves as the link between crude oil and gas production and final consumption by industries, businesses and households.

Experts who addressed the lawmakers identified several obstacles hindering the sector’s growth, including inadequate infrastructure, security threats to pipelines and facilities, regulatory disagreements, tariff concerns, vandalism and slow progress in domestic gas utilisation.

“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 presentation stated.

Participants stressed that addressing these challenges would be critical to improving energy access, industrial growth and the supply of petroleum products across the country.

The committee also praised Pipeline Infrastructure Nigeria Limited (PINL) for its contribution to protecting oil and gas infrastructure and supporting operations across the petroleum value chain.

Mr Okojie said the company had played a significant role in pipeline surveillance, maintenance and security, helping to safeguard critical assets and support stable crude oil production.

He noted that beyond infrastructure protection, PINL had created employment opportunities for youths in the Niger Delta and other operational areas while deploying technology-driven solutions to enhance efficiency in the sector.

The lawmaker described the company’s performance as commendable and urged it to sustain its efforts in 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.

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Throughout the retreats, lawmakers repeatedly emphasised the need for effective implementation of the Petroleum Industry Act, which restructured Nigeria’s oil and gas industry and established separate regulatory frameworks for the midstream and downstream sectors.

Mr Okojie said the committee’s oversight activities would be guided by measurable outcomes rather than procedural exercises, noting that Nigerians ultimately judge the sector by the affordability of cooking gas, reliability of energy supply and the performance of industries dependent on petroleum resources.

He pledged that the committee would maintain strict oversight of both operators and regulators while encouraging investments capable of driving growth and improving service delivery.

According to him, agencies responsible for regulating the sector would be held to high standards of accountability and transparency, while companies operating in the industry would also be expected to comply with established rules and obligations.

Legislative measures expected

In a communiqué issued after the Port Harcourt retreat, the committee reaffirmed its constitutional responsibility to oversee the sector and pledged to convert the outcomes of the deliberations into concrete legislative actions.

It said recommendations emerging from the retreat would shape future oversight hearings, committee directives and legislative initiatives in the House of Representatives.

The lawmakers also urged regulators, investors, host communities, operators and civil society groups to work closely with the National Assembly in efforts to build a more transparent, efficient and investment-friendly midstream petroleum industry.