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Kaztec, Shell sign $84.5m pipeline contract

By on July 16, 2013

Kaztec Engineering Ltd, KEL, a member of the Chrome Group, has won a $84.5 million for the engineering procurement and construction, EPC contract of Shell Nigeria Exploration and Production Company, SNEPCo’s Trans-Niger Pipeline, TNP.

The signing of the contractual agreements for the project, which took place at the SPDC Office, Port Harcourt, Rivers State, is valid for one year, according to a statement from the company.

The General Manager, Offshore and Shallow Water Projects, Mr Toyin Olagunju, and the Contracting and Procurement Lead Pipeline Projects, Mrs Chioma Ogunuka, signed for SNEPCo, while the Executive Chairman, Mr Emeka Offor, and the Chief Operating Officer, COO, Mr Ikechukwu Okpala, signed for Kaztec.

The statement also said that this is the first major pipeline project to be executed by Kaztec for Shell, saying: “The objective of the project is to construct a 3-inch, 58-kilometre loop line from the Ogale manifold to Bonny Terminal, in the South-South region of Nigeria. SNEPCO had been experiencing challenges with the current Trans-Niger Project.”

It added that SNEPCO and the National Petroleum Investment Management Services, NAPIMS, consider the project as an emergency, which was why it was divided into three phases

The statement said Kaztec Engineering is to undertake the first package of the contract, for which it was chosen based on the strength of its recent track record of project delivery in the oil and gas sector.

Speaking, Offor assured SNEPCO of his company’s commitment to deliver on, and even surpass all expectations from the project. He expressed delight for Kaztec joining the Shell family, and looked forward to a productive partnership in the years to come.

Okpala also reassured SNEPCO of KEL‘s delivery of the project on time and of good quality, as a taste of the “KAZTEC Magic”.

Speaking on behalf of SNEPCo, Olagunju, said that he looked forward to the successful completion of the project, and called for world-class performance in all aspects of the project.

He urged for particular attention on safety and environment with a zero-incident execution of the project.