NNPC Explains Why It Gave Pipeline Surveillance Contract To Oshiomole’s Friend
So, the Nigerian National Petroleum Corporation, NNPC has been battling continued attacks on its Trans Forcados pipeline, the second largest pipeline network in the Niger Delta.
To forestall the attacks, the corporation has awarded a security contract to Ocean Marine Solutions, OMS, which is owned by Idahosa Okunbo, a Nigerian businessman, whom Adams Oshiomole, chairman of the All Progressives Congress (APC), referred to as his friend in a 2016 letter to Ize Iyamu, according to The Cable.
In a statement released on Tuesday by the corporation and signed by Ndu Ughamadu, its spokesman, NNPC said the contract is the result of a rigorous appraisal of OMS’s record of performance on the Bonny-Port Harcourt and Warri-Escravos crude evacuation lines.
Trans Forcados is an 87km pipeline with a capacity of 250,000 barrels.
“In 2018, we lost over 60 days of production due to incessant breaches on the TFP despite having a security contract in place,” the statement read.
“In terms of production numbers, this translates to over 11 million barrels of crude oil which on face value equates to over $800 million in lost revenue to all the stakeholders in the matrix which includes: NNPC, its Joint Venture partners and the Nigerian Federation,” it added.
Ughamadu said the contract would require that the company bear the cost of any damage to the pipeline, unlike the former contract where the company was exempted from repair costs.
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