A Memorandum of Understanding was signed on Monday by the Nigerian National Petroleum Company and the Nigerian Content Development and Monitoring Board with multinational oil companies to shorten the industry’s contracting cycle to an ideal level of no more than 180 working days.
The Punch reported that according to a statement made by the management of the company, all parties signed the MoU at the national oil corporation’s Abuja headquarters.
It was anticipated that an optimized contracting cycle would boost ease of doing business, lower costs, and increase efficiency, all of which would eventually lead to increased production, higher revenues, and ultimately increased profitability.
The MoU was also anticipated to make a substantial contribution to the Federal Reserve’s aim for double-digit economic growth rates and generate value for all stakeholders, including investors, companies, host communities and Nigeria.
The contracting cycle for open competitive tender, selective tender, and single sourcing tender was reduced to 180, 178, and 128 working days, respectively, under the framework in the MoU, according to NNPCL.
Compared to the previous best effort performance, which was 327, 333, and 185 working days, respectively, this was a significant improvement.
The signing of the deal, according to NNPCL’s Group Chief Executive Officer Mele Kyari, had brought exciting times for the country’s oil and gas business and served as a bold declaration that the company was diving headfirst into the future of hope, productivity, and success.
The Executive Vice President of NNPCL’s Upstream Division, Oritsemeyiwa Eyesan, who attended the event in Kyari’s place, said that with oil and gas serving as the foundation of Nigeria’s economy, there was a need to get the contracting process in the Industry right so as to get the economy back on track.
The Executive Secretary of the NCDMB, Simbi Wabote, praised the MoU as a path forward and a crucial step towards increasing the country’s output of crude oil in his remarks.
