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NNPCL refutes allegation of shady oil pipeline rehabilitation contracts to northern cabal

NNPCL refutes allegation of shady oil pipeline rehabilitation contracts to northern cabal
NNPCL refutes allegation of shady oil pipeline rehabilitation contracts to northern cabal (Photo: Business Hallmark)

The Nigerian National Petroleum Company Limited, (NNPCL), has denied the allegation on some media platforms that it has unduly favoured some northern interests in the award of contracts to rehabilitate some ailing oil pipelines across the country.

NNPCL, the company has made the rebuttal via a press statement it issued Monday, insisting that the reports were “fallacious and designed to bring the good name of the company into disrepute.”

To confirm that there was no underhand dealings in the said contracts which it noted was on a Build, Operate and Transfer (BOT) agreement, the company published the names of the contractors and their job lots, avowing to maintaining transparency and global best practices.

The NNPCL statement read: “The attention of the Nigerian National Petroleum Company Limited (NNPCL) 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.

“NNPCL 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.”

It gave a breakdown of the firms the contracts were awarded to and their respective lots as below:

“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.”

The statement further read: “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 NNPCL, and we are fully committed to ensuring their continued operation in the interest of over 200 million Nigerians”

Techrectory with Agency Report.

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Written by Percy Onyeka

A seasoned Tech/Business Analyst, Digital Media Consultant , Publisher and Entrepreneur with more than a decade experience. Online Editor in Chief-New National Star newspaper and a host of clients...

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