The Nigerian National Petroleum Company Limited (NNPC) on Sunday debunked reports that its Group Chief Executive Officer, Mele Kyari, ‘quietly’ awarded pipeline contracts to a ‘ Northern Cabal’ without due process.
The reports had insinuated that Kyari gave ‘juicy’ rehabilitation contracts of the nation’s pipelines to four oil companies that include two downstream retailers, a move they said was tantamount to handing the retailers favourable control of the pipelines.
According to the imputations, A.A.Rano Nigeria Limited and MRS Oil Nigeria Plc, two retail businesses owned by two northerners, Auwalu Rano and Sayyu Dantata, respectively, got the highly coveted contracts.
But in a statement last night, the national oil company stated that there was no underhand dealings in the award of the contracts.
“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,” it stated.
To re-emphasise its commitment to transparency, NNPC said it subjected the selection process to a competitive tender guided by the Bureau of Public Procurement (BPP) standards, Infrastructure Concession Regulatory Commission (ICRC) expertise, and the active involvement of a Transaction Advisor.
The NNPC further stated that it also had representations from NEITI and the Ministry of Justice in the project development team and the evaluation exercise.
Stressing that the composition of consortium members per lot spread across Nigeria, it explained that for instance, LOT one had Oilserv Ltd, Chu Kong Steel Pipe Group Company Ltd and Saudi Crown Oilserv.
For LOT two, it noted that it was awarded to MacReady Oil and Gas Services, COBRA Instalicios S.A, Control Y Montajes Industriales & International De Pipelines, Iron Products Industries Ltd and Batelitwin Global Services Ltd.
Others on the lot were: Bauen Empresa Constructora SAU, Sanderton Energy Ltd and the Spanish National Association of Manufacturers.
Besides, the NNPC stated that LOT three was awarded to A A Rano, Zakhem Construction Nigeria, Bablinks Resources Ltd and VAE Controls S.R.O while LOT four had MRS Oil and Gas as well as CPPE Nigeria Ltd.
“It is imperative to emphasise that these contracts are Build, Operate and Transfer (BOT) 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,” the statement added.