NNPCL denies awarding pipeline contracts to a cabal, provides contractors’ names

The Nigerian National Petroleum Company Limited (NNPCL) has categorically refuted recent media reports suggesting the awarding of pipeline contracts to a select group of “Northern oil cabal.”

The company emphasized that all contract awards were strictly based on a comprehensive assessment of competence, carried out in collaboration with the Nigerian Extractives Industries Transparency Initiative (NEITI) and the Ministry of Justice.

In a statement released on October 8 and signed by the company’s management, NNPCL provided detailed information regarding the pipeline rehabilitation contracts distributed nationwide.

Furthermore, the company reiterated unequivocally that the ownership of these pipelines remains solely within the purview of NNPCL.

It affirmed its commitment to maintaining transparency and openness in all its operations. The company statement read thus:

• “The attention of the Nigerian National Petroleum Company Limited 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.  
• “These contracts, which were advertised, were awarded based on rigorous evaluation criteria and in line with industry norms.
• “To re-emphasize 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.  
• “We also had representations from NEITI and the Ministry of Justice in the project development team and the evaluation exercise. Below is 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 & 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

LOT 4: MRS Oil and Gas, CPPE Nigeria Ltd It is imperative to emphasize 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 ownership of these strategic national assets remains with NNPC Limited, and we are fully committed to ensuring their continued operation in the interest of over 200 million Nigerians.  
• “Should you have any further inquiries or require additional information, please do not hesitate to contact us. We are always open to engaging in constructive dialogue with all stakeholders.”  

Backstory 

• In an October 6 report by People’s Gazette (PG), it was disclosed that NNPCL had awarded pipeline maintenance contracts to an alleged Northern oil cabal. According to PG, this action highlighted the continued influence of the Northern cabal in the nation’s petroleum sector, as the contracts were secured by A.A. RANO Nigeria Limited and MRS Oil Nigeria Plc—retail businesses owned by northerners Auwalu Rano and Sayyu Dantata, respectively. 
• PG further mentioned that Mele Kyari, the NNPCL Group Chief Executive Officer, has consistently favored these two companies, primarily engaged in the trade of petroleum products. The PG report cited an instance in 2021 when both companies were chosen for crude-for-fuel swap contracts, addressing the nation’s motor and jet fuel requirements.
• Critics, as highlighted in the PG report, perceive this move as a means for the North to reinforce its influence, potentially controlling the fate of Nigerians during supply crises or shortages. This includes their ability to prioritize their own interests, set market prices, select preferred retail outlets for fuel distribution, and marginalize others, irrespective of the consequences—such as insufficient fuel supply to certain regions of the country.