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Four consortia to fix dilapidated pipelines – NNPCL


Group Managing Director of NNPC Mele KyariThe Nigerian National Petroleum Company Limited, on Monday, said four consortia would finance the rehabilitation of pipelines across the country based on build, operate and transfer terms.

Marketers have repeatedly complained about the dormancy of about 20 NNPCL depots, as they explained that this was due to the vandalism of pipelines that supply products to these facilities nationwide.

But in a post on its X (formerly Twitter handle) on Monday, the national oil company outlined four consortia that would finance the repairs of pipelines belonging to the NNPCL.

The company said it adhered to the highest standards of transparency and global best practices in selecting the consortia, adding that the contracts, which were advertised, were awarded based on rigorous evaluation criteria and in line with industry norms.

It said, “To re-emphasise our commitment to transparency, NNPCL subjected the selection process to a competitive tender guided by the Bureau of Public Procurement standards, Infrastructure Concession Regulatory Commission expertise, and the active involvement of a transaction advisor.

“We also had representations from Nigeria Extractive Industries Transparency Initiative 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; and LOT 4: MRS Oil and Gas, CPPE Nigeria Ltd.”

The company said it was “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. “

It said the 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.

“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,” the firm stated.

It further stated that the company was aware of reports alleging underhand dealings in awarding contracts to rehabilitate pipelines nationwide.”

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