September 25, (THEWILL) – The Nigerian National Petroleum Company (NNPC) Limited, Nigerian Content Development and Management Board (NCDMB) and International o
Oil companies (IOCs) operating in the country have signed a Memorandum of Understanding (MoU) to reduce the cycle of contracts within the sector.
THEWILL reports that the MoU will contribute to Ease of Doing Business, as well as reduce cost and drive efficiency in Nigeria’s Oil and Gas industry.
In a statement on Monday, NNPC Limited said the MoU was a demonstration of its commitment to the efficiency mandate as enshrined in the Petroleum Industry Act (PIA), which is hinged on developing an industry framework for an optimised contracting cycle.
According to the company, an optimised 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 MoU is also 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.
“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”.
Speaking at the event, the Group CEO of NNPC Limited, Mele Kyari, said signing the agreement heralds exciting times for the nation’s oil and gas industry and stands as a bold testimony that the Company is plunging into the future of hope, productivity and success.
Represented by Mrs. Oritsemeyiwa Eyesan, NNPC’s Executive Vice President, Upstream, Kyari added that with oil and gas as the bedrock of Nigeria’s economy, there is the need to get the contracting process in the Industry right so as to get the economy back on track.
On his part, the Executive Secretary, NCDMB, Engr. Simbi Wabote, described the MoU signing as a way forward and a critical step towards enhancing the nation’s crude oil production.
Speaking separately, the IOCs, represented by the MDs/Country Chairs of Shell, ExxonMobil, Chevron, TotalEnergies and ENI all pledged their commitment and support towards the implementation of the MoU for the benefit of all parties.
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