By Abdulwaheed Sofiullahi, Reporter, SOEs
The Nigerian Content Development & Monitoring Board (NCDMB) has formalized a Memorandum of Understanding (MoU) with some of the country’s hydrocarbon producers, including state owned NNPC Ltd as well as five International Oil Companies (IOCs).
The MoU is aimed at reducing the contracting cycle to a maximum of 180 working days.
The agreement, released on September 26, 2023 at the NNPC Towers in Abuja, focuses on the efficiency goals outlined in the Petroleum Industry Act (PIA), to establish an industry framework for optimizing the contracting cycle.
Key highlights of the framework in the MoU include reductions in the contracting cycle for open competitive tenders, selective tenders, and single sourcing tenders to 180, 178, and 128 working days, respectively, compared to the existing best effort performance of 327, 333, and 185 working days, respectively.
“An optimized contracting cycle is poised to enhance the ease of conducting business, lower costs, and drive efficiency, ultimately leading to increased production, higher revenues, and improved profitability”, according to a statement issued after the signing.
Signing on behalf of NCDMB was the agency’s Executive Secretary, Simbi Kesiye Wabote. The NNPC Ltd was represented by its Executive Vice President, Upstream, Oritsemeyiwa Eyesan. The participants described the MoU as a forward-looking step that will significantly enhance the nation’s crude oil production.
Representatives of IOCs, including the Managing Directors and Country Chairs of Shell, ExxonMobil, Chevron, TOTALEnergies, and ENI, pledged their commitment and support for the MoU’s implementation for the mutual benefit of all parties.
“This framework aligns with the Nigerian Upstream Cost Optimization Program (NUCOP) and is in accordance with the directive from the President for NNPC Ltd. and NCDMB to collaborate with the industry to improve the petroleum sector’s performance”, the statement added.