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How Dangote’s Stepbrother, Including Four Billionaires, Secured Multimillion-Dollar NNPC Deal

October 9, 2023
in Business
How Dangote’s Stepbrother, Including Four Billionaires, Secured Multimillion-Dollar NNPC Deal
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The recent awarding of multimillion-dollar NNPC contracts for pipeline rehabilitation to a consortium of indigenous oil companies, including one led by Africa’s wealthiest man, Aliko Dangote’s stepbrother, Sayyu Dantata, marks a significant milestone in Nigeria’s petroleum sector. These prominent businessmen, alongside their associates, successfully navigated a rigorous process to secure these pivotal contracts.

Their success in sealing the deal not only demonstrates their industry expertise but also underscores the Nigerian government’s commitment to involving the private sector in critical infrastructure projects. In this article, we will delve into the details of these contracts, the companies involved, and the broader implications for Nigeria’s energy sector. Let’s dive in.

Dangote’s brother and 3 other billionaires just made headlines

Dangote’s stepbrother, Sayyu Dantata, and three other influential billionaires made headlines with their recent success in securing multimillion-dollar NNPC contracts for pipeline rehabilitation. These billionaires include Olu Fagbemi,  Emeka Okwuosa, and Auwalu Abdullahi Rano. These agreements assigned on a LOT basis have attracted considerable interest due to their substantial scope and the participation of prominent Nigerian entrepreneurs.

This network includes 4,315 kilometers of multi-product pipelines and 701 kilometers of crude oil pipelines, connecting 22 fuel depots, Nigeria’s four refineries, and the crucial jetties at Atlas Cove and Warri. 

The Four Indigenous Firms who secured the contract

The four indigenous companies securing these crucial contracts awarded by NNPC are Macready Oil & Gas Service Company, led by Olu Fagbemi, Oilserv Limited, under the leadership of Emeka Okwuosa, AA Rano, led by Auwalu Abdullahi Rano, and MRS Oil Nigeria Plc, primarily owned by Sayyu Dantata. Each of these firms has been assigned a specific LOT for pipeline rehabilitation.

Oilserv Limited, led by Emeka Okwuosa, secured LOT 1, which involves the rehabilitation of the Bonny-Port Harcourt Crude Oil pipeline (54.8 kilometers), Port Harcourt-Aba–Enugu Products Pipeline (210 kilometers), as well as key depots and facilities. A.A Rano led by Auwalu Abdullahi Rano was awarded LOT 2, encompassing the rehabilitation of the Escravos–Warri Crude Oil Pipeline (60 kilometers), Warri-Benin Products Pipeline (90 kilometers), and associated depots.

Macready Oil & Gas Service Company, LOT 3, which involves the rehabilitation of the Warri-Kaduna Crude Oil Pipeline (604 kilometers), several product pipelines, and their respective depots, was secured by Macready Oil & Gas Service Company, under the leadership of Olu Fagbemi. While, MRS Oil Nigeria Plc primarily owned by Dangote’s brother Sayyu Dantata, clinched LOT 4, consisting of the Atlas Cove–Mosimi/Satellite Products Pipeline (72.8 kilometers), Mosimi–Ore Products Pipeline (151.3 kilometers), and various depots.

The contract is to revitalise Nigeria’s pipeline network

The move by NNPC and the companies which includes Dangote’s brother is expected to revitalize the country’s aging pipeline network, enhancing the reliability and efficiency of energy distribution. Dangote’s brother’s participation in these contracts signifies a crucial milestone in his business ventures, coming on the heels of the launch of a revolutionary $450 million lubricant plant in Lagos under Bestaf Lubricant Limited, a subsidiary of MRS Oil Nigeria Plc. This cutting-edge facility, capable of manufacturing 1,700 distinct lubricant products, stands as a pioneering achievement in West Africa.

Moreover, the rehabilitation efforts have the potential to impact fuel prices positively by reducing losses due to pipeline leakages and inefficiencies in product distribution. As these billionaires invest in Nigeria’s energy infrastructure through NNPC, they are not only fortifying the nation’s energy sector but also contributing to the broader goal of economic development and reduced reliance on fuel imports.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : BusinessElitesAfrica – https://businesselitesafrica.com/2023/10/09/how-dangotes-stepbrother-including-four-billionaires-secured-multimillion-dollar-nnpc-deal/

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