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NNPC lists 17 companies as awardees while denying awarding pipeline contracts to the “northern oil cabal.”

Oct 10, 2023 | 2023 Elections | 0 comments

The Nigeria National Petroleum Company (NNPC) denied reports of a “northern oil cabal” winning contracts for pipeline rehabilitation nationwide.

On Sunday, NNPC stated that the selection process involved the Bureau of Public Procurement (BPP), the Infrastructure Concession Regulatory Commission, and the Nigeria Extractive Industries Transparency Initiative (NEITI).

Management stated that NNPC conducted a competitive tender based on BPP standards, Infrastructure Concession Regulatory Commission expertise, and the involvement of a Transaction Advisor to demonstrate transparency in the selection process.

“NEITI and the Ministry of Justice were represented in the project development team and evaluation”.

NNPC said the report was false and intended to discredit the company. A national oil company said the process was transparent.

At NNPC Limited, we prioritise transparency and global best practices in all activities, including our contracting process. According to the statement, advertising contracts were awarded based on strict evaluation criteria and industry standards.

About 17 Oil Firms Received Pipeline Contracts

According to the NNPC, 17 oil firms received pipeline rehabilitation contracts.

The company announced that Oilserve Ltd, Chu Kong Steel Pipe Group Company Ltd, and Saudi Crown Oilserve were awarded lot one in the consortium.

NNPC awarded Lot 2 to MacReady Oil and Gas Services, COBRA Instalicios S.A, Control Y Montajes Industriales, Iron Products Industries Ltd, Batelitwin Global Services Ltd, Bauen Empresa Constructora S.A.U., Sanderton Energy Ltd, and the Spanish National Association of Manufacturers.

According to the statement, lot three was awarded to A.A. Rano, Zakhem Construction Nigeria, Bablinks Resources Ltd, V.A.E. Controls S.R.O., and lot four to M.R.S. Oil and Gas, CPPE Nigeria Ltd.

NNPC owns

The contract agreement focuses on building, operating, and transferring assets, but NNPC clarified that it does not involve transferring control to the companies.

Our goal is to improve pipeline integrity and functionality for efficient transportation of crude oil to refineries and nationwide product distribution’, stated the oil firm.

NNPC owns the pipelines, but the partners will fund rehabilitation.

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