78 firms bid to rehabilitate pipelines, depots –NNPC

The Nigerian National Petroleum Corporation on Sunday announced that 78 companies submitted virtual bids to rehabilitate its downstream pipelines , associated depots and terminal infrastructure through the finance , build , operate and transfer model .

NNPC ’ s Group Managing Director , Mele Kyari , said the exercise was in fulfilment of the corporation ’ s commitment to transparency and accountability as an Extractive Industries Transparency Initiative partner company .

Kyari disclosed this in a statement issued in Abuja by the spokesperson of the oil firm , Kennie Obateru.

He said the finance , build , operate and transfer model became imperative in the corporation ’ s journey to rehabilitate its downstream infrastructure which over time had become vulnerable , lost value and integrity due to age and incessant vandalism .

He said some of the assets were as old as 40 years and were due for replacement , adding that to carry out such a replacement of this magnitude , there would be need for resources .

Kyari was quoted as saying , “ And we know that we require these assets so we decided that we bring in private partners who will fund these pipelines ; they will construct operate them with us .

“ And ultimately they will fully recover their investment from the tariff which we will pay for using these pipelines and as soon as they recover their cost and their margin , they will hand over these assets back to us . ”

Kyari stated that by the end of the first quarter of 2021 , the final partners of the bid opening would be selected .

He assured the bidders that the NIPEX portal which was deployed for the pre -qualification exercise was a time tested technology that would not give room for any human indiscretion .

The corporation ’ s Chief Operating Officer, Downstream , Lawrencia Ndupu , who was represented by the Managing Director, Petroleum Products Marketing Company , Musa Lawan , said the Nigerian Pipelines and Storage Company operates 5 , 120 length of pipelines .

She said the pipelines traverses the entire country with two coastal depots in Lagos and Calabar, adding that the public bid opening processes was being done transparently.