NNPC seeks investors to built, operate and transfer pipelines, fuel depots
Nigerian National Petroleum Corporation (NNPC) on Tuesday called for bids from interested firms to help rebuild product pipelines and depots serving the country’s oil refineries and fuel distributions across the country.
In a public notice placed on its website, the state-owned oil company said interested investors, must have a minimum annual turnover of $500 million and experience in operating similar downstream infrastructure facilities.
The state-run oil firm said “prospective bidders to state clearly their BOT financing model scheme without any recourse to NNPC. The BOT model shall indicate tenure and recovery mechanism and indicative pricing.”
The pipelines network were built in 1970 to transport both crude oil from the Escravos and Bonny to the refineries and also finished products from the refineries to depots across the country.
But years of what NNPC described as “incessant” theft and vandalism, as well as simple ageing, have left the pipelines in need of extensive repairs.
The refineries themselves have run only sporadically, and NNPC shut them down earlier this year while they await repairs and upgrades. It said on Tuesday that those projects would be handled separately.
Nigeria has made producing its own fuels a core priority for years, but several efforts in recent years to revamp the refineries have failed, leaving it almost wholly reliant on imports.
Bidders for the projects would have to finance them independently and operate them for a “defined period” while they recovered investment costs, and were compensated for their work, with throughput tariffs, the document said.
It added that the new pipelines would need “intrusion detection” systems, in addition to deep burial, to stymie theft or vandalism. Submissions are due by Sept. 18.