Four billionaires, including Dangote’s half-brother, sign multi-million dollar deal with NNPC

by MMC
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The Nigerian National Petroleum Corporation Limited (NNPC) has awarded multi-million dollar pipeline rehabilitation contracts to four local oil companies in a significant move to revitalize Nigeria’s aging pipeline infrastructure.

These contracts, awarded on a LOT basis, have attracted attention not only for their scale but also for the involvement of prominent Nigerian businessmen, including Sayyu Dantata, who happens to be the man’s half-brother the richest in Africa, Aliko Dangote.

The rehabilitation contracts, designed to improve the efficiency and reliability of the country’s pipeline network, have drawn both praise and criticism from industry players.

The four local companies awarded these contracts are Macready Oil & Gas Service Company, led by Olu Fagbemi; Oilserv Limited, under the management of Emeka Okwuosa; AA Rano, led by Auwalu Abdullahi Rano; and MRS Oil Nigeria Plc, owned primarily by Sayyu Dantata.

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 the supply of crude to the country’s refineries and streamline product evacuation processes.

The extensive pipeline network targeted by the rehabilitation includes 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, headed by Emeka Okwuosa, emerged as the preferred bidder for LOT 1. This lot includes the rehabilitation of Bonny-Port Harcourt Crude Oil Pipeline (54.8 kilometres), Port Harcourt-Aba-Product Pipeline Enugu (210 kilometers), as well as the rehabilitation of the Bonny-Port Harcourt crude oil pipeline (54.8 kilometers). as well as key depots and facilities.

LOT 2, which includes the Escravos-Warri pipeline (60 kilometers), the Warri-Benin pipeline (90 kilometers) and associated depots, was secured by AA Rano, led by Auwalu Abdullahi Rano.

Macready Oil & Gas Service Company, under the leadership of Olu Fagbemi, was selected for LOT 3. This lot includes the rehabilitation of the Warri-Kaduna 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), the Mosimi-Ore Products pipeline (151.3 kilometers) and various deposits, was won by MRS Oil Nigeria Plc, owned mainly by Sayyu Dantata.

Sayyu Dantata’s involvement in these contracts marks a pivotal moment for its business activities. This follows the recent launch of a groundbreaking project $450 million lubricant plant in Lagos through Bestaf Lubricant Limited, a subsidiary of MRS Oil Nigeria Plc.

This state-of-the-art factory, with a production capacity of 1,700 different lubricant products, represents the first of its kind in West Africa.

Beyond its technical achievements, the plant is expected to contribute significantly to Nigeria’s economy by creating employment opportunities for youths, generating substantial income and reducing the country’s dependence on lubricant imports.

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