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Oanda awarded EPC contract for Nigeria’s AKK pipeline

19th April 2018

By: Anine Kilian

Contributing Editor Online

     

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JSE-listed Oando together with Oilserv have been awarded the engineering, procurement and construction (EPC) mandate for the Ajaokuta – Abuja portion of the $727-million Ajaokuta-Kaduna-Kano (AKK) pipeline system by the Nigerian National Petroleum Corporation (NNPC).

The contract award follows an extensive due diligence process conducted by the NNPC following a submission by Oando and Oilserv in 2013 in response to an expression of interest for a contractor-financed EPC development of the pipeline project.

"Our long-standing achievements and aspirations in the gas and power sector are testament to our desire to continuously provide innovative and integrated energy solutions across sub-Saharan Africa,” Oando chairperson Jubril Adewale Tinubu said in a statement on Thursday.  

The development of the 214-km AKK grid is a manifestation of the Gas Infrastructure Blueprint in the Nigerian Gas Master Plan, which seeks to extend the existing gas transmission network and achieve connectivity between the east and the north, serve new customers in the northern regions and bridge the shortfall in the western region.

In a bid to aggressively expand its operational footprint and further create value-adding opportunities in the gas and power space, Oando divested a portion of its midstream vehicle, Oando Gas & Power to Helios Investment Partners. Subsequently, Oando Gas & Power has been rebranded as Axxela.

According to NNPC, awards for the three lots on the AKK pipeline project were made to three selected consortia to facilitate a timely delivery of the gas network.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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