The Nigerian National Petroleum Company Limited (NNPCL), and Nigerian Content Development & Monitoring Board (NCDMB) have partnered with International Oil Companies (IOCs) to reduce the contracting cycle to an optimal level of not more than 180 working days.
An optimized contracting cycle is expected to improve the ease of doing business, reduce cost and drive efficiency which will eventually translate to production growth, increased revenues, and ultimately improved profitability.
The NNPC GCEO, Mele Kyari, at the signing of a Memorandum of Understanding (MoU) with the IOCs in Abuja on Monday, said this was a demonstration of the Company’s commitment to the efficiency mandate as enshrined in the Petroleum Industry Act (PIA), which is hinged on developing an industry framework for an optimized contracting cycle.
Kyari, who was represented by NNPC’s Executive Vice President, Upstream, Mrs Oritsemeyiwa Eyesan, said with oil and gas as the bedrock of Nigeria’s economy, there is a need to get the contracting process in the Industry right so as to get the economy back on track.
According to him, the MoU is expected to contribute significantly to the double-digit economic growth rate agenda of the Federal Government and generate tremendous value for all the stakeholders which include investors, companies, host communities and the nation at large.
Also, he added that the key benefits of the framework in the MoU include a reduction of the contracting cycle for open competitive tender, selective tender, and single sourcing tender to 180, 178, and 128 working days respectively compared with the current best effort performance of 327, 333, and 185 working days respectively.
In his remarks, the Executive Secretary, NCDMB, Engr. Simbi Wabote described the MoUs as a critical step towards enhancing the nation’s crude oil production.
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