The Nigerian National Petroleum Corporation (NNPC) has missed the October target it set for the ground breaking of the $2.4 billion Abuja Kaduna Kano (AKK) project.
Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, who, on September 2, announced the target in Beijing, China, stated that the AKK Project was dear to Nigeria, adding that the AKK project would “kick-start the project in October, when the dry season begins.”
The $835 million Abuja to Kaduna lots 2 deals from the project, investigations by New Dawn showed at the weekend, are stalled after 27 days the target was expected to be met.
The project is expected to gulp over $2.8 billion in investment as approved by the Federal Executive Council at its 46th meeting on December 13, 2017.
The contract was awarded to a consortium of indigenous and Chinese entities under a 100 per cent contractor financing model.
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.
Speaking on the project’s development, President Buhari, Baru said, had, while at the FOCAC Summit, reiterated the potentials of the project to strengthen Nigeria-China relations.
He added that the NNPC was looking forward to a successful close-out of the project’s financing towards official groundbreaking ceremony in October, this year.
“We want to maximize the construction work before the end of the year. We are hoping for the quick resolution of the financing agreements so that we will kick-start the project in October, when the dry season begins,” Baru added.
China had restated its commitment to funding guarantee for Brentex/China Petroleum Pipeline Bureau (CPP) Consortium Lot 3 contract value at $1.2 billion.
“The contract agreement for lots 2 deals covering 40inch x 193km, stretching from Abuja to Kaduna with contract value of about $835 million is yet to be executed,” a source close to the deal told this newspaper t the weekend.
This, he maintained, is “partially responsible for the failure to meet the October target set for ground breaking.”
The China National Petroleum Corporation (CNPC) has, however, reiterated funding guarantee for the lots 3.
The CNPC, Baru said in a statement, assured the NNPC of its unflinching commitment towards securing funding for the successful financing and subsequent execution of the project.
“The huge boost for the project was revealed during a high-level meeting between the NNPC and CNPC Management held on the sidelines of the Forum on China-Africa Cooperation (FOCAC) Summit in Beijing, China, the statement issued by Group General Manager, Group Public Affairs division of NNPC, Ndu Ughamadu, read.
The AKK gas pipeline would enable connectivity between the East, West and North that is 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.
Financing for the 40-inch x 614km AKK gas pipeline is expected to cost about $2.8bn, for the project described as the single biggest gas pipeline in the history of oil and gas operations in Nigeria.
The Nigerian National Petroleum Corporation (NNPC) has missed the October target it set for the ground breaking of the $2.4 billion Abuja Kaduna Kano (AKK) project.
Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, who, on September 2, announced the target in Beijing, China, stated that the AKK Project was dear to Nigeria, adding that the AKK project would “kick-start the project in October, when the dry season begins.”
The $835 million Abuja to Kaduna lots 2 deals from the project, investigations by New Dawn showed at the weekend, are stalled after 27 days the target was expected to be met.
The project is expected to gulp over $2.8 billion in investment as approved by the Federal Executive Council at its 46th meeting on December 13, 2017.
The contract was awarded to a consortium of indigenous and Chinese entities under a 100 per cent contractor financing model.
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.
Speaking on the project’s development, President Buhari, Baru said, had, while at the FOCAC Summit, reiterated the potentials of the project to strengthen Nigeria-China relations.
He added that the NNPC was looking forward to a successful close-out of the project’s financing towards official groundbreaking ceremony in October, this year.
“We want to maximize the construction work before the end of the year. We are hoping for the quick resolution of the financing agreements so that we will kick-start the project in October, when the dry season begins,” Baru added.
China had restated its commitment to funding guarantee for Brentex/China Petroleum Pipeline Bureau (CPP) Consortium Lot 3 contract value at $1.2 billion.
“The contract agreement for lots 2 deals covering 40inch x 193km, stretching from Abuja to Kaduna with contract value of about $835 million is yet to be executed,” a source close to the deal told this newspaper t the weekend.
This, he maintained, is “partially responsible for the failure to meet the October target set for ground breaking.”
The China National Petroleum Corporation (CNPC) has, however, reiterated funding guarantee for the lots 3.
The CNPC, Baru said in a statement, assured the NNPC of its unflinching commitment towards securing funding for the successful financing and subsequent execution of the project.
“The huge boost for the project was revealed during a high-level meeting between the NNPC and CNPC Management held on the sidelines of the Forum on China-Africa Cooperation (FOCAC) Summit in Beijing, China, the statement issued by Group General Manager, Group Public Affairs division of NNPC, Ndu Ughamadu, read.
The AKK gas pipeline would enable connectivity between the East, West and North that is 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.
Financing for the 40-inch x 614km AKK gas pipeline is expected to cost about $2.8bn, for the project described as the single biggest gas pipeline in the history of oil and gas operations in Nigeria.
