Home Energy NNPC opens Public Bid for rehabilitation of downstream pipelines and depots

NNPC opens Public Bid for rehabilitation of downstream pipelines and depots


…Announces an increased trading surplus of ₦20.36billion in July 2020

FRI, 18 SEPT 2020-theGBJournal-The Nigerian National Petroleum Corporation (NNPC) today opens the Public Bid for the rehabilitation of the Group’s downstream critical pipelines and associated depots and terminal infrastructure, a process to select a duly qualified limited liability Project Company(s) to finance the project and recover their cost through Pipelines and Depot throughput tariff- through a Build, Operate and Transfer (BOT) arrangement.

According to the NNPC, ‘’a company is allowed to express interest in a maximum of 2 LOTS. However, multiple bid winners will be awarded only 1 LOT where they are most competitive. Prospective Companies will therefore be required to submit as part of the Pre-qualification documents indicating the LOT(s) of their interest.’’

The Public Bid which will air live on national television, buttresses the Corporation’s evolving transparency and disclosure culture.

It comes a day after the corporation announced an increased trading surplus of ₦20.36billion in July 2020. Details of the figures captured in the July 2020 NNPC Monthly Financial and Operations Report (MFOR) indicated an 858 per cent overall upswell in performance, due largely to the 178 per cent rise in the surplus posted by the Nigerian Petroleum Development Company (NPDC), NNPC’s flagship Upstream entity.

The scope of the rehabilitation and construction of the crude oil and petroleum product pipelines and the upgrade of petroleum product storage Depots work ‘’shall cover but not limited Engineering, Procurement, Construction, Installation, Testing, Commissioning and Training (EPCI), Funding the entire Project cost including the EPCI and Operation of the revamped facilities over a defined period to allow for full recovery of cost and agreed compensation,’’ the NNPC said in the Pre-qualification of companies document.

The pipeline and depot network which is an integral national asset, has over the years suffered incessant vandalisation, and have aged giving rise to frequent failures and consequent operational downtimes, high maintenance cost and revenue losses.

‘’These and other factors convinced NNPC/NPSC to make the strategic decision to carry out replacement of its pipelines and rehabilitation/upgrade of its depots to enhance performance excellence,’’ the NNPC said.

The new pipelines will have Intrusion Detection and Cathodic Protection Systems to complement the deep burial.

The pipelines and depots in focus are the Atlas Cove – Mosimi – Ibadan – Ilorin pipeline system as well as the Bonny – Port Harcourt Crude Oil Pipeline, Bonny – Port Harcourt Crude Oil Pipeline, Port Harcourt Depot, Aba Depot and Enugu Depot, Port Harcourt Refinery – Bonny Export Terminal Products Pipeline, Bonny Export Terminal – Loading Jetty Products Pipeline, Bonny Export Terminal facilities.

Others are the Escravos – Warri Crude Oil Pipeline, Warri – Benin Products Pipeline, Benin – Ore Products Pipeline, Warri Depot, Benin Depot and Ore Depot, Warri – Kaduna Crude Oil Pipeline, Kaduna – Kano Products Pipeline, Kaduna – Jos Products Pipeline, Kaduna – Suleja Products Pipeline, as well as the Kaduna Depot, Kano Depot, Jos Depot, Suleja Depot, Atlas Cove – Mosimi/Satellite Products Pipeline, Mosimi – Ore Products Pipeline, Mosimi – Ibadan Products Pipeline, the Ibadan – Ilorin Products Pipeline and Atlas Cove Depot, Mosimi Depot, Satellite Depot, Ibadan Depot, and Ilorin Depot.

Meanwhile, the NNPC in reporting its July performance said, the NPDC’s impressive result was bolstered by the continuous improvement in global crude oil demand for the third consecutive month.

It said the corporation’s fortune was further enhanced by the 739 per cent increased profit posted by the Integrated Data Services Limited (IDSL) and a 51 per cent growth in performance by Duke Oil Incorporated, both companies of NNPC.

Returns from NNPC Retail Limited and Nigerian Gas Marketing Company (NGMC) during the period under review also grew by 28 per cent and 24 per cent respectively, owing to increased sales and improved debt collection.

In the Gas sector, Gas production in July 2020 increased by 2.19 per cent at 236.34Billion Cubic Feet (BCF) compared to output in June 2020; translating to an average daily production of 7,623.98Million Standard Cubic Feet of gas per day (mmscfd). Likewise, the daily average natural gas supply to gas power plants stood at 707mmscfd, equivalent to power generation of 2,421MW.

For the period July 2019 to July 2020, 3,079.64BCF of gas was produced, representing an average daily production of 7,812.11mmscfd during the period.

Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 70.88 per cent, 20.37 per cent and 8.75 per cent respectively to the total national gas production.

In the Downstream Sector, to ensure continuous stability in Premium Motor Spirit (PMS) supply and effective distribution across the country, 1.02billion litres of PMS translating to 32.95mn liters/day were supplied for the month.

The July NNPC MFOR stated that the corporation has continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across the Nation.

The report noted that during the period under review, 36 pipeline points were vandalized, representing about 9 per cent increase from the 33 points recorded in June 2020.

Atlas Cove-Mosimi and Aba-Enugu network accounted for 28 per cent each, while PHC-Aba and the other locations recorded 14 per cent and the remaining 31 per cent respectively. NNPC in collaboration with the local communities and other stakeholders continuously have strived to reduce the menace of pipeline vandalism.

‘’The July NNPC MFOR is the 60th edition in the series meant to sustain effective communication with stakeholders.’’ The NNPC said in a statement signed by the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru.

Twitter-@theGBJournal|email: info@govandbusinessjournal.com.ng