NNPC denies ‘underhand dealings’ in contract award for pipeline rehabilitation

The Nigerian National Petroleum Company Limited, NNPC Ltd, has issued a statement refuting claims of irregularities in the award of contracts for the rehabilitation of pipelines across the country. The NNPC stated that the contracts were awarded based on rigorous evaluation criteria and in adherence to industry norms. The company emphasized its commitment to transparency and global best practices in its operations, including the contracting process.

In response to the media reports alleging underhand dealings in the contract award, the NNPC clarified that the contracts were advertised and awarded through a competitive tender process. The selection process was guided by the standards of the Bureau of Public Procurement and the expertise of the Infrastructure Concession Regulatory Commission. The evaluation exercise also involved the active participation of a Transaction Advisor, as well as representatives from NEITI and the Ministry of Justice in the project development team.

The NNPC further revealed the composition of the consortium members for each lot spread across Nigeria. Lot 1 includes Oilserve Ltd, Chu Kong Steel Pipe Group Company Ltd, and Saudi Crown Oilserve. Lot 2 comprises MacReady Oil and Gas Services, COBRA Instalicios S.A, Control Y Montajes Industriales and International De Pipelines, Iron Products Industries Ltd, Batelitwin Global Services Ltd, Bauen Empresa Constructora SAU, Sanderton Energy Ltd, and The Spanish National Association of Manufacturers. Lot 3 consists of A A Rano, Zakhem Construction Nigeria, Bablinks Resources Ltd, and VAE Controls S.R.O. Lastly, Lot 4 includes MRS Oil and Gas and CPPE Nigeria Ltd.

The NNPC emphasized that these contracts are Build, Operate, and Transfer agreements, with the selected partners responsible for financing the rehabilitation. The company stated that the ownership of these strategic national assets remains with NNPC Ltd and assured the public of its commitment to ensuring the continued operation of these pipelines in the interest of over 200 million Nigerians.

The objective of the pipeline rehabilitation project is to enhance the integrity and functionality of the pipelines, allowing for the efficient transportation of crude oil to refineries and the distribution of petroleum products across the country. The NNPC remains resolute in its dedication to upholding the highest standards of transparency and excellence in its activities.

The recent allegations surrounding the contract awards to four oil companies, including two downstream retailers, have been refuted by the NNPC. The company categorically stated that these reports are fallacious and designed to tarnish its reputation. It reassured the public of its commitment to transparency, which remains a top priority.

It is important to note that the NNPC’s stance underscores its commitment to adhering to industry standards and ensuring that its operations reflect transparency and accountability. The comprehensive evaluation process and involvement of relevant stakeholders demonstrate the company’s commitment to adhering to best practices in the award of contracts.+

NAN

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