The Nigerian National Petroleum Company Limited (NNPCL) on Sunday described a report alleging that its managing director, Mele Kyari, quietly awarded the control of Nigeria’s pipelines to a Northern oil “cabal” as “fallacious”.
The oil company said this in a statement posted on its official handle on X platform Sunday night.
It described the report as “fallacious”, saying it was designed to bring its name into disrepute.
It explained that the pipelines contracts were advertised and were awarded based on rigorous evaluation criteria and in line with industry norms.
The company said 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.
“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,” the NNPCL said.
Insisting on “our commitment to transparency”, the company said it always “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,” the statement added.
The company also gave the composition of consortium members per lot spread across Nigeria as follows:
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 added.
“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 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,” it said.