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Nigeria opens pipeline, depot repair to private investors -tender

Published 11/08/2020, 18:38
Updated 11/08/2020, 18:42

LAGOS, Aug 11 (Reuters) - Nigerian oil company NNPC is
asking investors to bid to fix pipelines and depots serving its
oil refineries, according to a document posted on its website on
Tuesday.
Built in the 1970s, the pipeline network is crucial to
getting crude oil to NNPC's three refinery complexes, and moving
the finished fuels to consumers.
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, Africa's largest oil exporter, 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.

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