The Nigerian National Petroleum Company (NNPC) Limited has refuted claims that it awarded contracts for pipeline upkeep throughout the nation to a “northern oil cabal.”
The Infrastructure Concession Regulatory Commission (ICRC), the Nigeria Extractive Industries Transparency Initiative (NEITI), and the Bureau of Public Procurement (BPP) were allegedly involved in the selection process, according to a statement from the Nigerian National Petroleum Corporation (NNPC).
“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,” a statement signed by the NNPCL management said.
“We also had representations from NEITI and the Ministry of Justice in the project development team and the evaluation exercise,” he added.
NNPC said the report was fallacious and designed to bring the name of the firm into disrepute as the national oil firm said the process was transparent.
“NNPC Limited 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,” the statement reads.
The pipeline restoration contracts were handed to 17 oil companies, according to the NNPC.
According to the company’s list of consortium awardees, lot one was granted to Oilserve Ltd, Chu Kong Steel Pipe Group Company Ltd, and Saudi Crown Oilserve.
Lot two was awarded to 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, according to the NNPC.
According to the announcement, lot three was granted to AA Rano, Zakhem Construction Nigeria, Bablinks Resources Ltd, and VAE Controls S.R.O, while lot four was awarded to MRS Oil and Gas, CPPE Nigeria Ltd.
While the contract agreement was based on building, running, and transferring, NNPCL stated that the arrangement did not include the corporations gaining possession of the assets.
“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 oil firm said.
NNPC added that it retains ownership of the pipelines, however, the selected partners will finance the rehabilitation.