NCDMB, indigenous oil producers to reduce contract cycle time
The Nigerian Content Development and Monitoring Board and the Indigenous Petroleum Producers Group have signed a Service Level Agreement to drive local content implementation and simplify the procurement and tendering processes for oil and gas projects.
The SLA, according to the NCDMB, was developed by the two parties in line with the provisions of the Nigerian Oil and Gas Industry Content Development Act and in sync with the board’s 10-year strategic road map.
The Executive Secretary, NCDMB, Mr Simbi Wabote, said the SLA would enhance the reduction of contracting timelines to six months to meet the target set by the Minister of State for Petroleum Resources, Dr Ibe Kachikwu.
According to the statement, the agreement with the IPPG is the third in the series, as the NCDMB has executed similar pacts with the Nigeria LNG Limited and the Oil Producers Trade Section – the umbrella body of major oil-producing companies.
“This initiative was the first between a regulator and its key stakeholders in the Nigerian oil and gas industry,” Wabote said, adding that it had been very effective since its introduction in May 2017.
He said, “It has enhanced the efficiency of the interface between the board and industry operators. The example can be seen in the swift execution of some contracts in the oil and gas industry such as the LPG vessel supply contract awarded by the NLNG, the NLNG Train-7 project, and several other contracts put in place by the international operating companies under the umbrella of the SLA signed with the OPTS.
“The finger-pointing to the board as the point of delay in contracting process has drastically reduced with the transparency engendered by the SLAs.”
Wabote also urged indigenous firms to go into manufacturing, reiterating the pledge that the board would support firms with bankable proposals that would add value to the nation’s hydrocarbons.
The Chairman, IPPG and Managing Director of First E&P, Mr Ademola Adeyemi-Bero, said members of the group would comply with the SLA.
According to him, the key mantra of the group is to comply with all regulatory requirements, operate at international standards and add value to the nation’s oil and gas.
He said, “We have gone through it and we are in support. I am signing for the 25 members. The SLA is beneficial to each of our members. It will be a journey for us because it’s an issue of understanding.”
Adeyemi-Bero said the secretariat of the group would operationalise the SLA and track compliance on behalf of the members.
He stated that a major challenge many indigenous producers had with complying with the Nigerian Content Act stemmed from their perception of the law, adding, “Because we are indigenous companies, some of us sometimes assume that we were not meant to comply.”
According to him, the key issues in the SLA include “how to efficiently drive Nigerian Content-related documentations, submissions, reviews and approvals in line with the NOGIC Act.”
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