Oil and Gas

NNPC GMD Addresses Reports Of Award of Control of Nigeria’s Pipelines To Northern Oil Cabals

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GMD Of NNPC, Mele Kyari

The Group Managing Director of oil giant, Nigerian National Oil company Ltd has reacted to the news reports that he is quietly awarded control of oil pipelines to Northern canals.

The statement issued by the NNPC’s Manage of 8th of October, 2023 reads as follows:

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.

It is crucial to provide accurate information to address any misconceptions and ensure transparency in our operations. We would like to state categorically that these reports are fallacious and designed to bring the good name of the Company into disrepute.

NNPC Limited is deeply committed to adhering to the highest standards of transparency and global best practices in all our activities, and this includes our contracting process. These contracts, which were advertised, were awarded based on rigorous evaluation criteria and in line with industry norms.

To re-emphasise our commitment to transparency, NNPC subjected the selection process to a competitive tender guided by Bureau of Public Procurement (BPP) standards, 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.

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

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 is imperative to emphasise that these contracts are 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. Our 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.

The ownership of these strategic national assets remains with NNPC Limited, and we are fully committed to ensuring their continued operation in the interest of over 200 million Nigerians.

Should you have any further inquiries or require additional information, please do not hesitate to contact us. We are always open to engaging in constructive dialogue with all stakeholders.

About the author

Joseph Chukwuma Oputa

Joseph Chukwuma Oputa is the Managing Editor of Maslow Businessnews and Physicians News publications published by Maslow Business News Publications, Lagos, Nigeria.

Joseph Oputa is a proud Alumnus of the prestigious Nigerian Institute of Journalism, Lagos and Federal Polytechnic, Bida, Niger State.

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