Controversy persists over NNPC $3.9 billion Egina FPSO contract to Samsung

August 03, 2015 | Contracts, Nigeria

Abuja, Nigeria | – Controversy has continued to trail the Nigeria National Petroleum Corporation’s (NNPC) award of a $3.9 billion (about N1.2 trillion) Floating, Production, Storage and Offloading (FPSO) contract to Samsung Heavy Industries (SHI) at the Egina Field during the administration of former President Goodluck Jonathan, Nigerian Daily Trust newspaper reports.

According to the report, some staff of the NNPC who spoke to the newspaper have claimed due process was not followed in awarding the contract. They alleged that indeed, it was originally awarded to Hyundai Heavy Industries (HHI) who won the open bid, but former Petroleum Minister, Deziani Alison-Madueke re-awarded the contract to SHI.

The NNPC staff who spoke anonymously, further claimed that the former minister’s alleged action had made many foreign investors and international bidders to resolve not to come to Nigeria as long as due process is not allowed in the bidding process.

Presently, an uneasy calm revolves around the Egina Field project because of the controversy over the award of the contract.  Another source also noted that President Muhammadu Buhari should take particular interest in the award of the Egina Field contract by NNPC due to its controversial circumstances.