NIGERIAN NATIONAL PETROLEUM CORPORATION
NNPC TOWERS, HERBERT MACAULAY WAY, PMB. 190. GARKI-ABUJA, NIGERIA
THE NIGERIAN NATIONAL PETROLEUM CORPORATION (NNPC)

IN COMPLIANCE WITH THE GUIDELINES OF THE INFRASTRUCTURE CONCESSION REGULATORY COMMISSION (ICRC) ESTABLISHMENT ACT 2005 HEREBY WISHES TO ADVERTISE:

REQUEST FOR PRE-QUALIFICATION OF COMPANIES FOR THE REHABILITATION OF NNPC DOWNSTREAM CRITICAL PIPELINES AND ASSOCIATED DEPOTS / TERMINAL INFRASTRUCTURE THROUGH FINANCE, BUILD, OPERATE AND TRANSFER (BOT) MODEL.

1. BACKGROUND AND INFORMATION:
NNPC’s pipeline and Depot network is an integral national asset, the operation of which started in 1979 by the defunct Pipelines and Products Marketing Sector (PPMS). The organization was later renamed Pipelines and Products Marketing Company (PPMC) in 1988.

NNPC Management however, with the support of the Federal Government, unbundled the old PPMC to among others, have a separate entity overseeing the crude and product pipelines and storage network. The restructuring of PPMC in 2016 gave rise to the creation of Nigerian Pipelines and Storage Company (NPSC), which is charged with the responsibility for operations and maintenance of NNPC’s pipeline and depot facilities

By its design, the pipeline network is to move efficiently crude oil from terminals located at Escravos and Bonny to Warri Refining and Petrochemical Company (WRPC) and Port Harcourt Refining Company (PHRC), respectively. Thereafter, refined petroleum products-Premium Motor Spirit (PMS), Dual Purpose Kerosene (DPK) and Automotive Gasoline Oil (AGO) are moved from the Refineries to the product Depots for truck out.

Imported or Local Crude oil is supplied to Kaduna Refinery and Petrochemical Company (KRPC) via the pipeline from Escravos Terminal via WRPC and may also be discharged from vessels at Warri Jetty into WRPC tanks for onward pumping to KRPC. To meet any white product supply shortfall imported petroleum products are received into Atlas Cove Depot tanks via pipeline from the Single Point Mooring (SPM) facility offshore and/or the New Atlas Cove Jetty (NACJ) for onward distribution inland.

Over the years, the pipeline network has suffered incessant unauthorized interference. This is one of the strongest drivers for the introduction of Horizontal Directional Drilling (HDD) to the Scope of the Project. The new pipelines will have Intrusion Detection and Cathodic Protection Systems to complement the deep burial. In addition, these facilities have aged over the years giving rise to frequent failures and consequent operational downtimes, high maintenance cost and revenue losses. These and other factors convinced NNPC/NPSC to make the strategic decision to carry out replacement of its Pipelines and Rehabilitation/Upgrade of its Depots to enhance performance excellence.

The rehabilitation and/or construction of crude oil and petroleum product pipelines and the upgrade of petroleum product storage Depots operated by NPSC (“The Project”). together with certain ancillary infrastructure directly associated with the efficient operations of the pipelines and Depots. These include jetties, booster stations, pumps, control systems, metering systems, truck loading systems, electrical/instrumentation equipment, together with the pipelines and Depots herein collectively referred to as “NPSC Pipeline and Depot Facilities are to be rehabilitated, upgraded or replaced through a Build, Operate and Transfer (BOT) model.

Aside from system 2B (Atlas Cove – Mosimi – Ibadan – llorin pipeline system), the effective operation of NPSC’s Pipelines and Depots infrastructure are tied to the proper functioning of the Refineries. The rehabilitation and upgrade of NNPC’s Refineries is being separately financed.

2. NPSC’s OBJECTIVE
NNPC/NPSC plans to select a duly qualified limited liability Project Company(s) and execute on back-to-back terms, where the investor is expected to finance the project and recover their cost through Pipelines and Depot throughput tariff, through a Build, Operate and Transfer (BOT) arrangement.

The tender will be conducted through an open competitive process in accordance with the Scope of Work as defined below.

NNPC/NPSC therefore invites suitably qualified, experienced and reputable prospective Project Companies to submit Request for Pre-qualification

3. BRIEF DESCRIPTION OF THE SCOPE OF WORK
The rehabilitation and/or construction of crude oil and petroleum product pipelines and the upgrade of petroleum product storage Depots scope of work shall cover but not limited to:
I. Engineering, Procurement, Construction, Installation, Testing, Commissioning and Training (EPCI):
II. Funding the entire Project cost including the EPCI; and i)
III. Operation of the revamped facilities over a defined period to allow for full recovery of cost and agreed compensation.

NNPC/NPSC have already executed a Geotechnical and Geophysical survey of the PROWS, followed by Front End Engineering Design (FEED) in line with the critical need to change the vulnerability and obsolescence of the assets. This will be available to successfully pre-qualified companies to prepare the detailed engineering and cost estimates.

The following shall form part but not limited to the scope of work to be executed:

INSTALLATION OF NEW PIPELINES
1. Pipeline Right of Way (PROW) Confirmatory Survey
2. Environmental Impact Assessment
3. Engineering & Management
● Project Management
● Engineering & Design
● Procurement, Expediting
● Field Engineering
4. Construction Management
● Materials Control
● QA/QC
5. Materials & Equipment
● Line Pipe
● Main Line Valves
● Intrusion Detection
● L&Rs
● Pumps
● Cathodic Protection
● Miscellaneous
6. Construction
● Security
● Pipeline Construction
● HDD
● Pump Station Construction
● Miscellaneous
7. Partial Preliminary Survey, Construction & As-Built Survey
8. Freight
9. Commissioning.

UPGRADE OF DEPOTS/BONNY EXPORT TERMINAL (BET)
1. Equipment & Materials
2. Tanks Rehabilitation/Reconstruction
3. Mainline Pumps/Drivers
4. Heat Exchangers for LPFO (BET)
5. Truck Loading Pumps
6. Truck Loading Arm
7. Marine Loading Pumps (BET)
8. Marine Loading Arms (BET)
9. Piping, Pig Launchers, Valves & Fittings
10. Offshore platforms (BET)
11. Helipad (BET)
12. Cathodic protection system
13. Civil Works
14. Electrical Works/Lighting
15. Mechanical works
16. Metering Skids & Prover
17. Instrumentation
18. Control Systems
19. Systems integration and Automation
20. Control Room Rehabilitation/Reconstruction
21. Engineering Studies (Process, Civil, Mechanical, I&E, Geotechnical, etc)
22. Detailed Engineering Design
23. Construction Management
24. Supply Chain Management
25. Inspection
26. Mobilization/Demobilization/Clean-up
27. Testing and Commissioning

The Rehabilitation of the pipelines and associated Depots/ Terminal Infrastructure will be through a Finance, Build, Operate and Transfer (BOT) model and will be awarded on LOT basis. A company is allowed to express interest in a maximum of two (2) LOTS. However, multiple bid winners will be awarded only one (1) LOT where they are most competitive. Prospective Companies will therefore be required to submit as part of the Pre-qualification documents indicating the LOT(s) of their interest. The LOTS are categorized as follows: