NESTOIL wins Shell's major pipeline contract

By The Citizen

NIGERIA'S fledging indigenous oil giant, Nestoil Plc, has clinched a multi billion-naira key pipeline construction contract from multi national oil giant, Shell Nigeria Petroleum Development Company (SPDC) after a keenly competitive bid.

The multi-billion-naira contract, signed on Friday, at the Shell Industrial Area, Rumubiakani, Port Harcourt, is for an export pipeline in the Niger Delta to reroute the Kolo Creek gas to Soku Gas plant (K2S).

Signing for Shell was General Manager Nigeria, Operated, Onshore & Shallow Offshore Projects, Toyin Olagunju, and Vice President, Projects Operated, Engineer Graham Henley, while General Manager, Projects, Austin Agomuoh and Executive Director, Keith Jones, represented Nestoil.

Under the terms of the contract and scope of work signed on Friday at the Shell Industrial Area, Rumubiakani, Port Harcourt, Nestoil is expected to carry out the Engineering, Procurement, Construction, Installation and Commissioning, EPCIC of a 20-inch, 40 kilometre gas pipeline which would run from Kolo Creek to Soku, in Bayelsa State.

The project is to be funded by Zenith Bank Plc and has a two-year contract completion time frame.

The company is the largest indigenous company in the Oil and Gas sector, contributing significantly to the growth of the industry in the last 22 years. It has received accolades from International Oil Companies (IOCs) impressed by its capacity to deliver results on technically complex projects from its industrial base in Abuloma, Port Harcourt, Rivers State and understanding of the local terrain, particularly Niger Delta.

The scale of Nestoil's operations has been regarded as a sort of catalyst to increased local participation in oil and gas. Nestoil PLC, a diversified Oil and Gas company, has invested heavily in Engineering, Procurement Construction and Commissioning (EPCC) and major offshore fabrication.

The company belongs to the Obijackson Group, which has extensive interest in Exploration and Production (E&P), oil and gas, pressure vessel fabrication, dredging and marine logistics, aviation, civil and infrastructure construction and real estate.