Senate probes shutdown of onshore/offshore pipeline firm

In a key move to revitalise the Nigerian economy, the Senate Committee on Upstream Petroleum led by Senator Etang Williams, conducted an inspection tour at the Kaztec Engineering Facility in Lagos.

The inspection is part of on-going investigations into the reasons behind the project’s shutdown and efforts to revive it.

This came a few weeks after Governor Chukwuma Soludo of Anambra State and his team visited the site, urging President Bola Tinubu to address the facility’s issues given its potential to significantly impact the Nigerian Oil and Gas sector.

“We’ve seen it all. We’re going back to the drawing board and we will call everyone involved. We have the assurances of the Senate President because we all want this country to work for everyone.

“We’re committed to making things work and we’re assuring all stakeholders that justice will be done,” stated Senator Williams in a statement.

As per the Technical Director of Kaztec Engineering, Mr. Mike Simpson, the facility was a significant employer, providing jobs to over 10,000 people directly and indirectly until its closure in February 2015.

This followed a controversial force majeure incident, causing substantial job losses and business failures, with equipment and materials worth billions of dollars left abandoned.

The inspection by the Senate Committee aligns with the vision of President Tinubu’s administration to maximize the nation’s petroleum resources for overall growth and development.

As the Senate Committee presses on with its investigation, stakeholders across the Oil and Gas sector are eagerly awaiting the outcomes and proposed solutions for the revival of the Kaztec Engineering Facility.

The Committee’s visit drew a significant turnout, with members such as Deputy Chairman Senator Allwell Iheanacho Onyesoh, Senators Nwaebonyi Onyeka, Victor Umeh, Tony Nwoye, Asuquo Ekpenyong, Darlington Nwokocha, and Osita Ngwu present.

Representatives from NUPRC and other Regulatory Agencies also attended.

The shutdown of Kaztec Engineering, a 100% indigenous EPIC-M company, came as a result of a force majeure clause issued by the Nigerian government due to the non-development of assets by Addax Petroleum, the project’s technical partner.

The declaration led to the cessation of activities at the project site, causing operational challenges for Kaztec Engineering.

Source- Vanguard Newspaper.

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