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Nigerian Tribune: Shell awards $530m contract to NNPC subsidiary

Martin Ayankola, Lagos – 09.07.2007

Shell Petroleum Development Company of Nigeria Limited (SPDC) on Friday in Lagos awarded a $530 million engineering contract to the National Engineering and Technical Company Limited (NETCO).

NETCO is a subsidiary company of the Nigerian National Petroleum Corporation (NNPC).

The contract covers a range of activities in support of project portfolios of Shell companies in Nigeria and it is spread over five years with an option of two years.

SPDC’s General Manager, Engineering, Mr. Victor Dania, explained that under the terms of the contract, NETCO would be required to provide detailed engineering and associated studies in support of individual projects that would develop from initial conceptual engineering and provide procurement support thereafter.

NETCO is also expected to provide follow-on engineering support during construction and inauguration.

In awarding the contract, Shell said it was complying with the National Petroleum Investment Management Services (NAPIMS) directives that 50 per cent of nearly eight million man-hours Front End Engineering and Design (FEED) work requirement of SPDC /SNEPCO investment programme and project portfolio over five years be contracted to NETCO.

http://www.tribune.com.ng/09072007/news/news13.html

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