The Nigerian National Petroleum Corporation (NNPC) said yesterday that it had executed contracts for the engineering, procurement, construction, commissioning and financing for Lots 1 & 3 of the 40-inch x 614km Ajaokuta-Kaduna-Kano gas pipeline and stations with a consortium of indigenous and Chinese companies under a 100 per cent contractor financing model.
In a statement issued by the corporation, NNPC group managing director, Dr Maikanti Baru, noted that the AKK Gas pipeline is a section of Trans-Nigerian Gas Pipeline under the gas infrastructure blueprint designed to enable the industrialisation of the Eastern and Northern parts of Nigeria.
According to him, the project will also enable connectivity between the East, West and North, which is currently non-existent.
The statement signed by NNPC’s spokesman, Ndu Ughamadu, further said under the terms of contract, Lot 1, with total length of 40inch x 200km, stretching from Ajaokuta to Abuja Terminal Gas Station, was awarded to the OilServe/Oando Consortium.
Lot 3, which runs from Kaduna Terminal Gas Station (TGS) to Kano TGS, with total length of 40inch x 221km, was awarded to the Brentex/China Petroleum Pipeline Bureau (CPP) Consortium.
It is envisaged that contract agreement for Lot 3, which covers 40inch x 193km, stretching from Abuja to Kaduna, will be executed in the weeks ahead.
Baru explained that the AKK section has suffered setbacks due to scarce resources for government to fully finance the project, hence the adoption of the contractor financing model.
“The two other pipelines, the OB3 & ELPs 2 in the Gas Master Plan blue print, are currently at various stages of completion and are being financed directly by the Federal Government,’’ he said.
In his remarks, on behalf of the Oilserve/Oando Consortium, Engr Emeka Okwuosa, chairman of Oilserve Limited, expressed gratitude to the federal government and the NNPC for providing the opportunities for indigenous companies to flourish in the Nigerian Oil and Gas Industry.
He said the decision to award Lot 1 of the AKK project to an indigenous consortium speaks volume of government’s resolve to grow and encourage the attainment of the ideals of local content philosophy.
Engr Abubakar Nuhu, vice- chairman of Brentex Nigeria Limited, said the Brentex-CPP Consortium would rely mainly on the acclaimed pedigree and global expertise of CPP in pipeline construction to deliver a world-class project.
The process for the award of the AKK project, had commenced in July 2013 with the advertisement for tenders published by the NNPC in major national newspapers.
After a painstaking technical and commercial evaluation process, the Federal Executive Council at its 46th meeting on 13th December 2017 approved the contract valued at over $2.8 billion.