The Federal Executive Council has approved a procurement contract of three point seven billion naira for the replacement of petroleum pipeline for the Ministry of Petroleum Resources.
Minister of State, Petroleum, Dr Ibe Kachikwu, revealed this to Journalists at the end of the first cabinet meeting for 2019, presided over by President Muhammadu Buhari.
He said the pipelines were affected by corrosion but would be replaced with a new technology flexible pipeline.
One of the memos approved for the Ministry of Petroleum was and Engineering Procurement Construction and Installation contract EPCI, for the 12x 6 inch Okpoho-Okono pipelines, which was awarded to National Oil Vaco Completion and Makot Nigeria; it's a consortium of two companies. The total contract sum was for N3.7 billion and roughly about $37 million.
The essence of this was that in 2014, the pipeline with which we were evacuating crude in that area gave way and so production became very marginal, we were producing an average of about 20, 000 barrels per day as opposed to the capacity of between 37 and 40, 000 barrels and this contract is therefore to replace that pipeline with a new technology flexible pipeline to resist corrosion, the Minister explained.
Source: Voice of Nigeria