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The Nigerian National Petroleum Corporation Limited (NNPC) has awarded multimillion-dollar contracts for pipeline rehabilitation to four indigenous oil companies in a significant move aimed at revitalizing Nigeria’s aging pipeline infrastructure.
These contracts, assigned on a LOT basis, have garnered attention not only for their scale but also for the involvement of prominent Nigerian businessmen, including Sayyu Dantata, who happens to be the stepbrother of Africa’s richest man, Aliko Dangote.
The rehabilitation contracts, designed to enhance the efficiency and reliability of the nation’s pipeline network, have drawn both praise and criticism from industry stakeholders.
The four indigenous firms securing these contracts are Macready Oil & Gas Service Company, led by Olu Fagbemi; Oilserv Limited, under the leadership of Emeka Okwuosa; AA Rano, led by Auwalu Abdullahi Rano; and MRS Oil Nigeria Plc, primarily owned by Sayyu Dantata.
The NNPC’s decision to select these companies is part of a broader strategy to leverage private-sector expertise and resources through the “build, operate, and transfer” financing model. This approach aims to facilitate crude supply to the nation’s refineries and streamline product evacuation processes.
The extensive pipeline network targeted for rehabilitation encompasses 4,315 kilometers of multi-product pipelines and 701 kilometers of crude oil pipelines. It intricately connects 22 fuel depots, Nigeria’s four refineries, and the crucial jetties at Atlas Cove and Warri.
Oilserv Limited, led by Okwuosa, emerged as the preferred bidder for LOT 1. This lot includes the rehabilitation of the Bonny-Port Harcourt Crude Oil pipeline (54.8 kilometers), Port Harcourt-Aba–Enugu Products Pipeline (210 kilometers), as well as key depots and facilities.
LOT 2, which comprises the Escravos–Warri Crude Oil Pipeline (60 kilometers), Warri-Benin Products Pipeline (90 kilometers), and associated depots, was secured by A.A Rano, led by Rano.
Macready Oil & Gas Service Company, under the leadership of Fagbemi, was selected for LOT 3. This lot encompasses the rehabilitation of the Warri-Kaduna Crude Oil Pipeline (604 kilometers), several product pipelines, and their respective depots.
Finally, LOT 4, consisting of the Atlas Cove–Mosimi/Satellite Products Pipeline (72.8 kilometers), Mosimi–Ore Products Pipeline (151.3 kilometers), and various depots, was won by MRS Oil Nigeria Plc, primarily owned by Dantata.
Dantata’s involvement in these contracts marks a pivotal moment for his business endeavors. It follows the recent launch of a groundbreaking $450-million lubricant plant in Lagos through Bestaf Lubricant Limited, a MRS Oil Nigeria Plc subsidiary.
This state-of-the-art facility, with a capacity to produce 1,700 different lubricant products, represents the first of its kind in West Africa.
Beyond its technical achievements, the plant is expected to significantly contribute to Nigeria’s economy by creating employment opportunities for the youth, generating substantial revenue, and reducing the country’s reliance on lubricant imports.
