In response to recent reports suggesting that pipeline rehabilitation contracts were awarded to a “northern oil cabal,” the Nigerian National Petroleum Company (NNPC) Limited has firmly denied these allegations. NNPC has asserted that the contract selection process was not conducted solely by the company but involved several governmental entities, emphasizing transparency and adherence to strict procurement standards.

The Bureau of Public Procurement (BPP), Infrastructure Concession Regulatory Commission, and the Nigeria Extractive Industries Transparency Initiative (NEITI) actively participated in the selection process, ensuring fairness and accountability. Representatives from NEITI and the Ministry of Justice were part of the project development team, contributing to the evaluation exercise.

NNPC emphasized its unwavering commitment to maintaining the highest standards of transparency and global best practices throughout all its operations, including the contracting process. The company categorically stated that the contracts were awarded based on rigorous evaluation criteria and industry norms.

The pipeline rehabilitation contracts were reportedly awarded to 17 oil firms as part of a consortium arrangement. The list of awardees for different lots includes the following:

Lot One:

  • Oilserve Ltd
  • Chu Kong Steel Pipe Group Company Ltd
  • Saudi Crown Oilserve

Lot Two:

  • 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 Three:

  • AA Rano
  • Zakhem Construction Nigeria
  • Bablinks Resources Ltd
  • VAE Controls S.R.O

Lot Four:

  • MRS Oil and Gas
  • CPPE Nigeria Ltd

While these contracts are based on a “build, operate, and transfer” agreement, NNPC clarified that they do not involve the transfer of control over the assets to the awarded companies. NNPC retains ownership of the pipelines, and the selected partners will finance the rehabilitation process. The overarching objective of these contracts is to enhance the integrity and functionality of the pipelines, facilitating efficient crude oil transportation to refineries and product distribution across Nigeria.

NNPC’s statement aims to debunk any misconceptions and reaffirm its dedication to transparent and accountable business practices in the oil and gas sector.

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