NNPC dismisses claims of awarding contracts to a “northern oil cabal”

The Nigerian National Petroleum Company (NNPC) Limited has refuted claims that it granted contracts for the rehabilitation of pipelines nationwide to a purported “northern oil cabal.”

In an official statement on Sunday, signed by its management, NNPC clarified that the contract selection was not a unilateral decision by the company alone. The Bureau of Public Procurement (BPP), Infrastructure Concession Regulatory Commission, and the Nigeria Extractive Industries Transparency Initiative (NEITI) were all actively involved in the selection process.

The statement highlighted, “To underscore 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.”

NNPC emphasized their dedication to upholding transparency and adhering to the highest standards of global best practices in all activities, including the contracting process. The contracts were awarded following stringent evaluation criteria and industry norms.

Furthermore, NNPC disclosed that a total of 17 oil firms were awarded the pipeline rehabilitation contracts. The statement provided details on the consortiums and companies allocated to the respective lots for the pipeline rehabilitation.

Additionally, NNPC clarified that although the contract agreement involves building, operating, and transferring, it does not entail the transfer of control of the assets to the companies. NNPC retains ownership of the pipelines, with the selected partners responsible for financing the rehabilitation.