PPPRA to audit infrastructure in downstream sector to guarantee proficiency
…audit to focus on storage, distribution facilities, others
The Petroleum Products Pricing Regulatory Agency (PPPRA) is to begin a comprehensive audit and survey of downstream oil and gas logistics facilities with a view to assessing their state, adequacy and identify the infrastructure gap in the sector, it said.
In a statement issued on Saturday signed by the Executive Secretary Abdulkadir Saidu, the agency noted that the infrastructure audit in the downstream requires constant assessment to ensure uninterrupted supply of products in addition to providing up-to-date data for operation in the sector.
The agency said decision to undertake the audit was based on the fact that the state of infrastructure in the downstream of the Nigerian oil and gas sector largely impact the level of profitability and proficiency of the market.
“Oil and gas processing, storage and distribution facilities, jetties downstream and pipelines, retail outlets for oil and gas (LPG) etc., will be the focus of the survey which is equally aimed at assessing the impact of government policy and regulation on the sector’s operating environment and viability, with a view to addressing identified loopholes,” the agency said.
The audit exercise, which is expected to cmmence later this year, is a long-awaited exercise by operators and other stakeholders, according to the statement. The outcome is expected to contribute to policy formulation and impact investment decision-making by investors.
The Abdulkadir Saidu-led management of the PPPRA is championing this exercise, which is in furtherance of the reform programme of President Buhari in the oil sector.
All oil and gas depot, retail outlets and LPG plant owners, marketers are stakeholders in this exercise, the objective of which is to enhance the commercial viability of the sector and improve its level of attractiveness as investment capital destination of choice for would-be investors, according to the statement.