WorldStage Newsonline– The Nigerian National Petroleum Corporation (NNPC) has said arrangements were underway for the historic groundbreaking of the 40inch x 614km Ajaokuta-Kaduna–Kano (AKK) gas pipeline and stations.
Mr Ndu Ughamadu, NNPC spokesman said this in a statement in Abuja on Sunday.
Ughamadu said this followed last week’s successful execution of contract agreements for the engineering, procurement, construction, commissioning and financing for Lots 1 & 3 of the over $2.8 billion trans-Nigeria gas pipeline project.
The AKK pipeline has been described as the single biggest gas pipeline project in the history of oil and gas operation in Nigeria.
”Upon completion, 24 months from now, the AKK gas pipeline would enable connectivity between the East, West and North, currently non-existent.
”It would also enable gas supply and utilization to key commercial centres in the Northern corridor of Nigeria with the attendant positive spin-off on power generation and industrial growth.”
He said that the contract was awarded to a consortium of indigenous and Chinese entities under a 100 per cent contractor financing model.
Ughamadu said that Lot 1 with total length of 40inch x 200km stretching from Ajaokuta to Abuja Terminal Gas Station awarded to the OilServe/Oando Consortium had a contract value of about $855 million.
”Lot 2 whose contract agreement is yet to be executed covers 40inch x 193km, stretching from Abuja to Kaduna with contract value of about $835 million.
”Lot 3, which runs from Kaduna Terminal Gas Station (TGS) to Kano TGS with total length of 40inch x 221km, was awarded to the Brentex/China Petroleum Pipeline Bureau (CPP) Consortium under a contract value of about $1.2 billion.
”The above brought the total value of the entire project to over $2.8 billion as approved by the Federal Executive Council at its 46th meeting on Dec. 13, 2017.
”For so long, NNPC had activated an aggressive gas reforms and implementation drive, requiring accelerated implementation of gas pipeline infrastructure development with specific focus on critical pipeline infrastructure to power plants and industries.”
Between 2010 and now, almost 500km of pipelines had been completed, commissioned and now delivering gas.
Some of the completed pipelines include the Oben-Geregu (196km), Escravos-Warri-Oben (110km), Emuren-Itoki (50km), Itoki-Olorunshogo (31km), Imo River-Alaoji (24km) and Ukanafun-Calabar pipeline (128km).
In addition, there is ongoing construction of the strategic East-West OB3 pipeline (127km) scheduled for completion by the third quarter of 2018 and the expansion of the Escravos-Lagos Gas Pipeline System scheduled for completion later in 2018.
”With the growth in infrastructure, gas, hitherto inaccessible and flared, is now being utilized.
”Nigeria has seen the most aggressive drop in gas flaring from a peak of 2500mmcf/d few years ago to about 700mmcf/d currently and reducing,” Ughamadu said.
FINANCIAL STATEMENTS UP TO DATE
The Nigerian National Petroleum Corporation (NNPC) said on Sunday that it had updated its outstanding audit of the group financial statements from 2011 to 2016.
NNPC Spokesman, Mr Ndu Ughamadu, said in a statement in Abuja that the audited backlog had since been approved by the board of the corporation in line with the laws governing its operations.
He quoted Mr Isiaka AbdulRazaq, Chief Financial Officer/Group Executive Director, Finance and Accounts, NNPC, as saying that the presentation of the audited financial statements would help foster better relationship between NNPC and stakeholders.
He said that the presentation would further promote transparency and accountability in the corporation.
Ughamadu said that the management inherited a total of 65 unaudited financial statements for NNPC group corporate and its subsidiaries covering 2011 – 2014.
”There were, undoubtedly, challenges that led to the backlog which may have been beyond the control of the previous managements.
”However, the important factor was not to look at the past. We saw an opportunity to challenge the problem, and resolved to clear the arrears in the shortest possible time,” he said.
He said the NNPC management constituted a project steering committee, which met weekly with the auditors and relevant stakeholders to identify and isolate key challenges and give them priority attention.
“With this approach, management achieved the first step of concluding the audit of the 2011 – 2012 financial positions and presented same to the board in 2016.
”In recognition of that modest achievement, the NNPC board further mandated management to clear the remaining outstanding reports for the period 2013 – 2016.
“The result today is the delivery and board approval of the audited group financial statements as at Dec. 31, 2016,’’ he said.
Ughamadu said that the Managing Director, Nigerian Pipeline and Storage Company, Mr Luke Anele, would embark on a comprehensive audit of the over 5000 kilometre petroleum products and crude oil pipelines under its watch.
He said the project which had already been approved by the NNPC management would be executed by the National Engineering and Technical Company, an upstream subsidiary of the NNPC.
