NNPC reacts to report on awarding pipeline contracts to cabal

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has stated that media reports claiming it silently awarded pipeline construction solely to northern oil business owners are false.

The media report claimed that the inclusion of MRS Oil Company PLC and AA Rano, by two northerners, Sayyu Dantata and Auwalu Rano, respectively, indicated that northern cabals have a firm grip on the oil sector in the country.

Reacting to the report, NNPC said it is deeply committed to adhering to the highest standards of transparency and global best practices in its activities, reasons it included several organizations to monitor its contract award process.

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It said the contract was for 4 lots and was awarded based on rigorous evaluation criteria and in line with industry norms to several companies who won after an advertisement was made.

“The attention of the Nigerian National Petroleum Company Limited has been drawn to reports in an isolated section of the media alleging underhand dealings in the award of contracts for the rehabilitation of pipelines across the country.

“To re-emphasise our commitment to transparency, NNPC subjected the selection process to a competitive tender guided by Bureau of Public Procurement (BPP) standards; and the Infrastructure Concession Regulatory Commission expertise, and the active involvement of a Transaction Advisor. We also had representations from NEITI and the Ministry of Justice in the project development team and the evaluation exercise.

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“Below is the composition of Consortium members per lot spread across Nigeria.

“LOT 1: Oilserve Ltd, Chu Kong Steel Pipe Group Company Ltd, Saudi Crown Oilserve. LOT 2: MacReady Oil and Gas Services, COBRA Instalicios S.A, Control Y Montajes Industriales & International De Pipelines, Iron Products Industries Ltd, Batelitwin Global Services Ltd, Bauen Empresa Constructora SAU, Sanderton Energy Ltd, The Spanish National Association of Manufacturers.

The statement continued, “LOT 3: A. A Rano, Zakhem Construction Nigeria, Bablinks Resources Ltd, VAE Controls S.R.O. LOT 4: MRS Oil and Gas, CPPE Nigeria Ltd.”

It added that the contracts are based on Build, Operate, and Transfer agreements, “and selected partners are to finance the rehabilitation and do not entail the transfer of control of these assets to any particular company.

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The NNPC Ltd. further stated that its objective,” is to enhance the integrity and functionality of the pipelines to facilitate the efficient transportation of crude oil to refineries and the distribution of its products across the country.”

It said the ownership of the national assets remains with NNPC Limited which is fully committed to ensuring their continued operation in the interest of over 200 million Nigerians.