By Daniel Edu
Speculation regarding the cancellation or re-award of the N48 billion oil pipeline surveillance contract in the Niger Delta has not been confirmed, as the Federal Government has not issued any directive in this regard. The Nigerian National Petroleum Company Limited (NNPCL) is currently awaiting a presidential directive regarding the future of the contract.
The contract, which was reportedly awarded to a security firm owned by former Niger Delta militant leader Government Ekpemupolo, also known as Tompolo, had stirred mixed reactions. Some stakeholders supported the move, while others opposed it. Recent claims suggested that the contract might be canceled or awarded to another firm.
Oil sector analysts and operators have advised the government to thoroughly analyze the Key Performance Indicators (KPIs) of the contract before making a decision.
Sources from the Federal Ministry of Petroleum Resources and the NNPCL confirmed that there has been no directive yet on whether to cancel or re-award the contract. A senior official from the Federal Ministry of Petroleum Resources stated that the contracts are being executed according to their terms and conditions and that there is no directive to cancel or re-award them.
The contract required Tompolo’s security firm, Tantita Security Services Limited, to protect oil pipelines across several states in the Niger Delta, in collaboration with major stakeholders in the oil-bearing communities.
It was reported that the Senate Committee on Ethics, Privileges and Public Petitions summoned the Group Chief Executive Officer of NNPCL in January to address concerns about the contract raised by the Isoko Community, alleging that their community was not adequately involved in the project.
As of now, there has been no official decision on the fate of the contract, and the NNPCL is awaiting further guidance from the presidency. The contract, according to the NNPCL, was a response to the need for private contractors to protect the oil pipeline network in Nigeria due to rampant oil theft.
