Pipelines rehabilitation contracts award based on evaluation criteria, industry norms – NNPC Ltd

The Nigerian National Petroleum Company Limited (NNPC Ltd) has clarified that the contracts for pipeline rehabilitation were awarded based on evaluation criteria and in accordance with industry standards.

The management of the NNPC Limited made this known in a statement on Sunday while reacting to reports in some section of the media alleging underhand dealings in the contract award.

It said the contracts, which were advertised, were awarded based on rigorous evaluation criteria and in line with industry norms.

“The attention of the NNPC Ltd has been drawn to reports in an isolated section of the media alleging underhand dealings in the award of contracts for the rehabilitation of pipelines across the country.

“It is crucial to provide accurate information to address any misconceptions and ensure transparency in our operations.

“We would like to state categorically that these reports are fallacious and designed to bring the good name of the Company into disrepute.

“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,” it said.

The NNPC Limited, while re-emphasising its commitment to transparency, said it subjected the selection process to a competitive tender guided by Bureau of Public Procurement standards, Infrastructure Concession Regulatory Commission expertise, and the active involvement of a Transaction Advisor.

It said it also had representations from NEITI and the Ministry of Justice in the project development team and the evaluation exercise.

It listed the composition of Consortium members per lot spread across Nigeria.

“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 and 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 3: A A Rano, Zakhem Construction Nigeria, Bablinks Resources Ltd, VAE Controls S.R.O and LOT 4: MRS Oil and Gas, CPPE Nigeria Ltd

“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,” it said.

It said its objective was 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.

According to the NNPC management, the ownership of these strategic national assets remains with NNPC Limited, and are fully committed to ensuring their continued operation in the interest of over 200 million Nigerians.

It would be recalled that some sections of the media recently alleged that NNPC Ltd has awarded juicy rehabilitation contracts of the nation’s pipelines to four oil companies, including two downstream retailers.