On Monday, the Nigerian National Petroleum Company Limited (NNPCL) disclosed that four consortia had been selected to fund the rehabilitation of pipelines across Nigeria under the build, operate, and transfer (BOT) terms. The move comes in response to concerns raised by marketers about the inactivity of approximately 20 NNPCL depots, attributing the issue to pipeline vandalism.
Taking to its social media platform, the national oil company outlined the selected consortia, emphasizing its commitment to transparency and adherence to global best practices in the selection process. The contracts were awarded through a competitive tender guided by standards from the Bureau of Public Procurement and the expertise of the Infrastructure Concession Regulatory Commission, with active involvement from the Nigeria Extractive Industries Transparency Initiative and the Ministry of Justice.
The composition of the consortia per lot, spread across Nigeria, is as follows:
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., and the Spanish National Association of Manufacturers
LOT 3: A. A. Rano, Zakhem Construction Nigeria, Bablinks Resources Ltd., and VAE Controls S.R.O.
LOT 4: MRS Oil and Gas, CPPE Nigeria Ltd.
NNPCL clarified that the contracts are BOT agreements, with selected partners responsible for financing the rehabilitation without entailing the transfer of control of these assets. The objective is to enhance the integrity and functionality of the pipelines for efficient crude oil transportation to refineries and product distribution across the country. NNPC Limited assured that the ownership of these assets remains with the company, committed to their continued operation in the interest of over 200 million Nigerians. The company addressed reports alleging underhand dealings in the contract award process, emphasizing its dedication to transparency and integrity.