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NNPC enmeshed in contract-bidding fraud as clash of interests emerges amongst directors

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NNPC to build two new condensate refineries

A maze of fraudulent bids in the process to acquire some companies under Nigerian National Petroleum Corporation (NNPC) was uncovered on Sunday.

A report published by Premium Times revealed that the sale of these two companies were masterminded and owned by the same directors.

Furthermore, details emerged about a third bid which was eventually discovered to be linked to a company known as Korpu Energy Limited (which is registered) and not Kurpo Energy Limited (which is unregistered).

These damaging discoveries came in the wake of a controversial bid supervised by the NNPC Group Executive Director (GED) Refinery, Mustapha Yakubu, that saw scarce slop oil – traditionally reserved for local industries – being controversially offered to preferred bidders that are export companies.

The slop oil consignment is domiciled at the Port Harcourt Refining Company (PHRC).

These three companies implicated in the report — Sign Oil &Gas Ltd, Synthesis Integrated Pure Oil and Gas Limited and Kurpo Energy Ltd — were alleged to have been aided in their schemes by top NNPC insiders and decision-makers.

The ripple effects of these allegations might derail the economic programmes of President Muhammadu Buhari who has repeatedly pledged to ensure sanity and stability in the oil sector.

READ ALSO: Presidency explains what Buhari did to make NNPC declare profit

For local manufacturers in Nigeria – particularly those in labour-intensive industries like textiles, cement, rubber processing, food and beverages – slop oil is the only alternative to Low Pour Fuel Oil (LPFO) a product of fractional distillation that keeps the boilers of manufacturing industries running.

The LPFO is also used in power generating plants to get around the challenge of acute gas shortages.

A source within the NNPC stated that a damage control is ongoing which might witness the slop oil allocation going to a fourth company said to be a local company.

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