Secret Pipeline Power Play: NNPC’s Covert Deal with Northern Oil Tycoons

[Shekinah Brama]

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Secret Pipeline Power Play: NNPC’s Covert Deal with Northern Oil Tycoons Raises Concern

In a covert maneuver, Mele Kyari, Managing Director of NNPC Limited, has discreetly granted lucrative rehabilitation contracts for Nigeria’s pipelines to four oil companies, including two downstream retailers. This move has sparked concerns about these retailers gaining control over the pipelines, potentially exploiting other retail outlets and the Nigerian public.

 

The chosen companies—Oilserv Limited, A.A RANO Nigeria Limited, Macready Oil & Gas Service Company Limited, and MRS Oil Nigeria Plc—have been tasked with maintaining the country’s vital pipelines to expedite the flow of crude oil to refineries and the transportation of its byproducts back to Nigeria.

 

Speculation is rife that the Northern oil ‘cabal’ still wields influence in Nigeria’s petroleum sector, even after President Muhammadu Buhari’s presidency, as A.A. Rano Nigeria Limited and MRS Oil Nigeria Plc, both owned by Northerners Auwalu Rano and Sayyu Dantata, secured these coveted contracts.

 

NNPC’s preferential treatment of these businesses has fueled suspicions. In 2021, they were awarded crude-for-fuel swap contracts to meet the nation’s fuel needs, further raising questions about their influence.

 

These recent pipeline contracts, awarded in separate Lots, have raised concerns. MRS Oil secured the most significant Lot 4, giving them control over depots in the South-West region. Meanwhile, A.A Rano won Lot 2, granting them authority over the South-South region. Critics argue that this consolidation of power could lead to regional disparities in fuel distribution and pricing.

 

Industry experts have criticized the contract awards, deeming them excessive power for retail businesses. Kelvin Atafiri, CEO of Cavazanni Human Capital Limited, expressed concerns about MRS Oil’s newfound influence in the South-West, potentially impacting fuel distribution and pricing.

 

The secretive nature of these contracts has further fueled suspicions that the Northern ‘cabal’ continues to operate in the shadows, maintaining its grip on the nation’s energy sector.

 

While NNPC publicly defended its payment of N48 billion to ex-militant Government Ekpemupolo in 2022 to protect pipelines, it remains silent on the awarding of contracts to A.A. Rano and MRS Oil. The State House has not provided clarity on whether President Bola Tinubu, the nation’s petroleum minister, was aware of these covert contracts.

 

Mele Kyari, NNPC’s Managing Director, has not commented on the matter, leaving questions unanswered about this clandestine power play in Nigeria’s oil industry.

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