Dantata, 3 Other Oil Billionaires Secure Lucrative NNPC Pipeline Deals, Details Emerge

Dantata, 3 Other Oil Billionaires Secure Lucrative NNPC Pipeline Deals, Details Emerge

  • NNPC has awarded contracts for pipeline rehabilitation to four indigenous oil companies amid dissatisfaction from industry players
  • These contracts are critical to Nigeria's energy supply chain as Nigeria reduces reliance on imports
  • The argument from oil players is that pipeline operators are different from retailers

Four Nigerian billionaires are set to reap substantial financial rewards after their companies secured multi-billion contracts from the Nigerian National Petroleum Company Limited (NNPC).

The companies are Oilserv Limited, A.A RANO Nigeria Limited, Macready Oil & Gas Service Company Limited, and MRS Oil Nigeria.

NNPC pipeline contracts
NNPC awards pipeline contracts to four oil companies, MRS and AA Rano Photo credit: NNPC
Source: Facebook

These contracts, awarded through the build, operate, and transfer (BOT) financing model, are designed to facilitate crude supply to the refineries and efficient product evacuation from them.

The companies are also to maintain and rehabilitate the vast pipeline network across the country.

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Details of the NNPC pipeline contracts

BusinessDay reports The pipeline network encompasses 4.35 kilometres of multi-product pipelines and 701 kilometres of crude oil pipelines.

It also interconnects 22 fuel depots, Nigeria's four refineries, and the crucial jetties at Atlas Cove and Warri.

Insight on the contracts

The breakdown of the contracts awarded to the four companies is as follows:

Oilserv Limited

Oilserv Limited, owned by Engr. Dr. Emeka Okwuosa was awarded LOT 1, including the Bonny-Port Harcourt Crude Oil pipeline, Port Harcourt-Aba-Enugu Products Pipeline, and more.

A.A. RANO

Alhaji Auwalu Abdullahi Rano company was awarded LOT 2, which comprises the Escravos-Warri Crude Oil Pipeline, Warri-Benin Products Pipeline, and others.

Macready

Macready Oil & Gas, a brainchild of Olu Fagbemi, will be in charge of LOT 3, covering the Warri-Kaduna Crude Oil Pipeline, Kaduna-Kano Products Pipeline, and more.

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MRS Oil Nigeria Plc

MRS Oil Nigeria, founded in 1995 by Alhaji Sayyu Dantata, secured LOT 4, involving the Atlas Cove-Mosimi/Satellite Products Pipeline, Mosimi-Ore Products Pipeline, and others.

Concerns from industry players

Industry players have raised concerns about MRS and Rano selection by the NNPC limited, arguing that retailers do not have a relationship with pipeline contracts.

Top 5 oil companies in Nigeria rain cash on employees in first half of 2022

Legit.ng earlier reported that leading energy firms in Nigeria spent heavily on staff welfare, including salaries, and other benefits, to retain them.

Seplat Energy, Total Energy and Ardova were the top oil marketers in Nigeria with the highest personnel costs and expenses in the first half of 2022.

Statements from their records show that the oil firms spent about N17.2 billion on staff and personnel expenses between January and June 2022, representing a 14.4% increase compared to N15.04 billion recorded in the previous year.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.