Awards of multi-products pipeline contracts to A.A Rano, Mrs Oil, Oilserve, others: NNPC defends action
Oredola Adeola
The Nigerian National Petroleum Company Limited (NNPC) has defended its decision to award control of multi-billion Naira petroleum products pipelines to A A Rano, MRS Oil, Oilserve Ltd MacReady Oil and Gas Services, and others, allegedly made up of some Northern Nigerian billionaires.
The management of the national oil company in a statement tagged RE: NNPC GMD QUIETLY AWARDS CONTROL OF NIGERIA’S PIPELINES TO NORTHERN OIL ‘CABAL’, refuting the claims by an isolated section of the media alleging underhand dealings in the award of contracts for the rehabilitation of pipelines across the country.
According to NNPC management, the selection and contracting processes were subjected 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.
It further emphasised that the process was subjected 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.
It said, “We also had representations from NEITI and the Ministry of Justice in the project development team and the evaluation exercise.
NNPC further stated that the Consortium members awarded the contracts per lot spread across Nigeria to include:
“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 Constructor 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.
“LOT 4: MRS Oil and Gas, CPPE Nigeria Ltd.”
NNPC Limited further stated that it was deeply committed to adhering to the highest standards of transparency and global best practices in all our activities, including the award of contracts for the rehabilitation of pipelines across the country.
It said, “These contracts, which were advertised, were awarded based on rigorous evaluation criteria and in line with industry norms.
“It is 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.
“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 NNPC management said.
It further stated that the ownership of those strategic national assets remains with NNPC Limited, emphasising that it is fully committed to ensuring their continued operation in the interest of over 200 million Nigerians.
The NNPC’s decision has been met with criticism, with some
EnergyDay gathered that some concerned stakeholders raised alarm over the decision of NNPC to award a network of petroleum products pipelines, expressing concerns over the transparency of the process.
The rehabilitation of the network of pipeline projects is a massive undertaking that covers almost 5,000 kilometers and 701 kilometers of crude oil pipelines. It interconnects 22 fuel depots, Port Harcourt, Warri, and Kaduna refineries, and major jetties at Atlas Cove and Warri.
However, critics raised concerns about the quality of work that can be done by downstream petroleum products companies without technical expertise.
Some of the companies include A. A RANO owned by Alhaji Auwalu Abdullahi Rano, that was awarded LOT 2, alongside other consortiums, to handle the Escravos-Warri Crude Oil Pipeline, Warri-Benin Products Pipeline, and others
LOT 4 was awarded to MRS Oil Nigeria Plc, owned by the Dantata family, alongside other companies to rehabilitate the Atlas Cove-Mosimi/Satellite Products Pipeline, Mosimi-Ore Products Pipeline, and others.
Engr. Dr. Emeka Okwuosa’s Oilserv Limited, currently handling the 614km-long AKK pipeline being developed by the Nigerian National Petroleum Corporation (NNPC), was awarded LOT 1, including the Bonny-Port Harcourt Crude Oil pipeline, Port Harcourt-Aba-Enugu Products Pipeline, and more.
While Macready Oil & Gas, an independent risk engineering consulting service, owned by Olu Fagbemi, was awarded LOT 3 alongside other consortiums, to rehabilitate the Warri-Kaduna Crude Oil Pipeline, Kaduna-Kano Products Pipeline, and more.
