Conflict of interest between Mobil Producing Nigeria and the National Petroleum Investment Management Services (NAPIMS), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) may delay the award of a gas pipeline contract worth over $250 million in Nigeria.
The contract, meant for the laying of gas export subsea line from Oso Riser Platform to Mobil’s Qua Iboe Terminal, Ibeno, was awarded to West African Ventures Ltd in 2014, and later cancelled few weeks ago because of the company’s inability to begin work on it after four years.
The process of re-awarding the contract to a new company, is reportedly generating tension between Mobil and NAPIMS, as the two organisations are backing two different companies for the job.
While Nigerstar7 is NAPIMS’ favourite for the contract, Mobil’s officials are said to be pushing for it to be awarded to Saipem.
Both Nigerstar7 and Saipem had participated in the 2012 bid for the pipeline contract which they lost to West African Ventures.
In the bidding, it was learnt that NigerStar7 was the second lowest bidder, and Saipem, third, in NAPIMS’ evaluation, while Saipem was second, and NigerStar7, third, in Mobil’s evaluation.