A two party consortium consisting of Oando PLC (Oando), in conjunction with its midstream affiliate, Axxela Limited (Axxela) and Oilserv Limited, has been awarded the EPC mandate for the Ajaokuta – Abuja portion (Lot 1). This portion is part of the Ajaokuta-Kaduna-Kano 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 AKK Pipeline Project.
The USD 727M Ajaokuta-Abuja Pipeline development is a 215km gas infrastructure with associated facilities such as metering/terminal gas station, pigging station, block valve stations, etc.
The development of the AKK grid is a manifestation of the gas infrastructure blueprint in the Nigerian Gas Master Plan. This plan 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.
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.
