NNPC, NCDMB, IOCs Signs MOU to Expedite Oil, Gas Contracting Process

The Nigerian National Petroleum Company Limited (NNPC Ltd) and the Nigerian Content Development & Monitoring Board (NCDMB) have signed a Memorandum of Understanding (MoU) with international oil companies (IOCs), which is a significant development for Nigeria’s oil and gas industry.
The main goal of this MoU is to shorten and speed up the contracting cycle, with a target of 180 working days.
This tactical choice is in line with Nigeria’s oil and gas sector’s cost-cutting initiatives and the Ease of Doing Business policy. On Monday, September 25, NNPC Ltd announced the news via its official Twitter account.
The MoU signing ceremony, which was conducted in Abuja at the NNPC Towers, signifies a concrete dedication to efficiency as required by the Petroleum Industry Act (PIA).
The PIA promotes the creation of an industry framework that streamlines contractual procedures with the ultimate purpose of improving company accessibility, lowering expenses, and increasing productivity.
Increased output, higher sales, and increased profitability are anticipated results of these enhancements.
The MoU framework’s principal features include:

• Significantly shorter contracting cycles of 180, 178, and 128 working days for open competitive tender, selective tender, and single sourcing tender, respectively. Compared to the current best-effort performance of 327, 333, and 185 working days, respectively, this is a significant improvement.
  Mele Kyari, Group Chief Executive Officer of NNPC Ltd, expressed his optimism for the future of the country’s oil and gas industry at the MoU signing ceremony.
  In order to aid economic recovery, he emphasised the necessity of streamlining the contracting process as well as the crucial role that oil and gas play in Nigeria’s economy.
  The signing of the MoU was lauded as a crucial step towards increasing Nigeria’s crude oil production by Engr. Simbi Wabote, the Executive Secretary of NCDMB.
  IOC representatives, including those from Shell, ExxonMobil, Chevron, TotalEnergies, and ENI, expressed their commitment to and support for the implementation of the MoU and acknowledged its potential advantages for all parties.
  The Nigerian Upstream Cost Optimisation Programme (NUCOP) and the President of Nigeria’s mandate for NNPC Ltd. and NCDMB to work with the industry to improve petroleum industry performance are both in line with this programme.
  Additionally, the development is consistent with NNPC Ltd.’s primary PIA responsibilities, enabling it to function as the National Energy Company profitably and efficiently.
  NNPC Ltd. is committed to working closely with partners to optimise processes, procedures, and deadlines in order to promote efficiency and profitability within the industry. Efficiency is at the forefront of the company’s strategy.

Source: allnewsng.com

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