Tuesday 18 December 2012

NNPC: We Won’t Bend Contracting Procedures for IOCs


The Nigerian National Petroleum Corporation (NNPC) has said that it would not compromise on its established processes of awarding contracts for major pending projects in Nigeria’s oil and gas sector to the benefit of International Oil Companies (IOCs).
Apparently raising eyebrows over media reports credited to some IOCs which had accused it of deliberately stalling the execution of some multibillion dollar projects in the petroleum sector, the acting General Manager Public Affairs of NNPC, Mr. Fidel Pepple, said in a statement in Abuja that the corporation will only adhere to established procedures in its contracting cycle than been made to compromise.
Pepple stated that the corporation will not be intimidated to abandon its firmly established process of contract award because of what it termed calculated media blackmail ostensibly by the IOCs and other interested parties.
He said in the statement that while the industry concern is normally expected in the processes leading to the award of major oil and gas projects, the NNPC has an established procedure of contract and project approval which includes conduct of economic analysis to establish project viability as well as the Federal Government’s interests from investments in the upstream.
The corporation also defended its Group Executive Director, Exploration and Production (GED, E&P), Abiye Membere, who was alleged to be behind a phantom contract splitting attempt of the Egina project as he allegedly did with the previous Bonga South-west project, saying that such allegation was totally misplaced and untrue.

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