The Nigerian National Petroleum Company Limited (NNPC Limited) has responded to recent media reports alleging irregularities in the award of contracts for the rehabilitation of the country’s pipelines.
In a statement released on Sunday October 8, 2023, NNPC Limited vehemently denied any wrongdoing and reaffirmed its commitment to transparency and adherence to global best practices.
The statement from NNPC Limited comes in the wake of media speculation regarding the awarding of pipeline rehabilitation contracts, with some reports suggesting that control of Nigeria’s pipelines had been covertly granted to a “Northern oil cabal.” The Company’s management sought to dispel these claims and clarify the process behind the contract awards.
“We would like to state categorically that these reports are fallacious and designed to bring the good name of the Company into disrepute,” the statement read.
NNPC Limited emphasized its unwavering dedication to the highest standards of transparency and industry norms in its contracting processes. The contracts in question, the Company noted, underwent a rigorous selection process in line with guidelines set forth by the Bureau of Public Procurement (BPP), the Infrastructure Concession Regulatory Commission, and the involvement of a Transaction Advisor. Furthermore, representatives from the Nigerian Extractive Industries Transparency Initiative (NEITI) and the Ministry of Justice were engaged in the project development team and the evaluation exercise.
The statement provided details of the consortium members for each lot spread across Nigeria, indicating the companies involved in the pipeline rehabilitation contracts. These contracts were described as Build, Operate, and Transfer (BOT) agreements, where selected partners would finance the rehabilitation without transferring control of the assets to any specific company. The primary objective of these contracts is to enhance the integrity and functionality of the pipelines, facilitating the efficient transportation of crude oil to refineries and the distribution of petroleum products across the nation.
NNPC Limited also reaffirmed that the ownership of these strategic national assets remains under its control, assuring the Nigerian public that their interests are being protected. With a commitment to the well-being of over 200 million Nigerians, the Company emphasized its dedication to ensuring the continued operation of these assets for the benefit of the nation.
In closing, NNPC Limited invited all stakeholders to engage in constructive dialogue and seek further information if required, underlining its commitment to transparency and accountability in all its operations.
