Tension Rises in N’Delta over $18.5m Oil Pipeline Surveillance Contract

Tension has started building up in Delta State due to the decision of the Nigerian National Petroleum Corporation (NNPC) to award oil infrastructure surveillance contract to Ocean Marine Solution Limited contrary to extant rules.

Multiple sources told THISDAY at the weekend that the NNPC approved a contract for the surveillance of the 87-kilometre Trans-Forcados Pipeline (TFP) to Ocean Marine Solution Limited at a whopping $18.48 million on September 26.

Consequently, thousands of youths and ex-militants from 111 host communities to OML 30 assets described NNPC’s decision an impending chaos in the Niger Delta, thereby demanding reversal of the contract.

The youths alleged that the NNPC alliance with Ocean Marine was about to deprive them of their livelihood; render thousand of them jobless and in effect fuel a new round of unrest in the host communities.

According to the terms of reference of the contract, it is meant to last for five renewable months, coming with some other conditions spelling out penalties that may attend loss of products or breaches to parts of the length of the pipeline.

Contrary to the terms of reference, one of the sources said the contract has started raising eyebrows amongst stakeholders because due process was followed.

Already, the source said those concerned with due diligence in governance, especially as in the oil and gas sector, faulted arbitrary and unexplained inflation of the contract sum and NNPC’s decision to beat the standing rule that no ministry, department and agency could award a contract that is up to $20million in value.

Speaking on the allegation, Spokesman of Ijaw Youths Council (IYC), Mr. Daniel Dasimaka highlighted the inherent security threat associated with the new contract approved by the NNPC to Ocean Marine.

In a statement he issued yesterday, Dasimaka said the NNPC might not have paid attention “to threat the new contract poses to the peace and security of the communities and Delta state as a whole.

“There is a running contract, approved by the operators of the assets to a contactor that has been doing an awesome job on the assets; no reports of negative incidences and the communities are happy.

“Imagine the sort of tension that has attended this new approval in just a few days, the silent and cold wars. This is a latent crisis situation on our hands, I will not buy the narrative that they never envisaged a war from this.