'False' - NNPC reacts to claim it gave pipeline contracts to Northern cabals, lists beneficiary firms

The Nigerian National Petroleum Company Limited (NNPC) has denied media reports(not Legit.ng) suggesting that its Managing Director, Mele Kyari, quietly awarded control of the country's pipelines to a select "Northern oil cabal".

The oil company, in a statement posted on its official handle on X platform on Sunday, October 8, 2023, labelled the allegations as fallacious, aimed at tarnishing its reputation.

NNPCL added that the pipeline contracts were awarded through a transparent and rigorous evaluation process, adhering to industry norms and guidelines.

It noted further that the pipeline contracts were advertised and were awarded based on rigorous evaluation criteria and in line with industry norms.

The company also said that it subjected the selection process to a competitive tender guided by the Bureau of Public Procurement (BPP) standards, infrastructure concession regulatory commission expertise, and the active involvement of a transaction advisor.

Part of the statement reads: "The Nigerian National Petroleum Company Limited (NNPC) has become aware of recent media reports that have raised concerns about alleged unethical practices related to the awarding of contracts for the rehabilitation of pipelines throughout the country.

"We believe it is essential to provide accurate information to clarify any misunderstandings and maintain transparency in our operations. We want to state that these reports are unfounded, a lie and appear to be aimed at tarnishing the reputation of our organisation.

"NNPC Limited is firmly committed to upholding the highest standards of transparency and adhering to global best practices in all our endeavors, including our contract procurement procedures.

"The contracts in question were publicly advertised and subsequently awarded through a meticulous evaluation process, consistent with established industry norms.

"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."

NNPC pipeline contract allocations

To justify its adherence to transparency, NNPCL released the names of the companies that secured the pipeline contracts.

- LOT 1 includes Oilserve Ltd, Chu Kong Steel Pipe Group Company Ltd, and Saudi Crown Oilserve.

- LOT 2 consists of 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 comprises A A Rano, Zakhem Construction Nigeria, Bablinks Resources Ltd, and VAE Controls S.R.O. LOT 4 involves MRS Oil and Gas and CPPE Nigeria Ltd.

- LOT 4 involves MRS Oil and Gas and CPPE Nigeria Ltd.