Energy

NNPCL: How we awarded pipeline rehabilitation contracts

The Nigerian National Petroleum Company Limited (NNPCL) says the contracts for pipeline rehabilitation were awarded based on evaluation criteria and in accordance with industry standards.

The NNPCL management made this known via a statement on Sunday, October 8, 2023, in reacting to reports alleging underhand dealings in the contract award.

The reports alleged that the NNPCL awarded juicy rehabilitation contracts for the country’s pipelines to four oil companies, including two downstream retailers.

The company, however, described the reports as “fallacious and designed to bring the good name of the company into disrepute”, adding that the contracts, which were advertised, were awarded based on rigorous evaluation criteria and in line with industry norms.

The NNPCL, while re-emphasising its commitment to transparency, said it subjected the selection process to a competitive tender guided by Bureau of Public Procurement standards, Infrastructure Concession Regulatory Commission expertise, and the active involvement of a Transaction Advisor.

It stated that it had representations from NEITI and the Ministry of Justice in the project development team and the evaluation exercise.

The company, however, listed the composition of Consortium members spread across Nigeria to include “LOT 1: Oilserve Limited, Chu Kong Steel Pipe Group Company Limited, Saudi Crown Oilserve.

“LOT 2: MacReady Oil and Gas Services, COBRA Instalicios S.A, Control Y Montajes Industriales and International De Pipelines, Iron Products Industries Limited, Batelitwin Global Services Limited, Bauen Empresa Constructora SAU, Sanderton Energy Limited, The Spanish National Association of Manufacturers.

“LOT 3: AA Rano, Zakhem Construction Nigeria, Bablinks Resources Limited, VAE Controls S.R.O and LOT 4: MRS Oil and Gas, CPPE Nigeria Limited.”

The NNPCL added that the contracts were “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.”

It said its objective was 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.

NNPCL stressed that the ownership of the strategic national assets remains with the company, saying it is committed to ensuring their continued operation in the interest of Nigerians.

The Star