The Nigerian National Petroleum Company Ltd (NNPCL) and the Nigerian Content Development and Monitoring Board (NCDMB) have signed a Memorandum of Understanding (MoU) with the International Oil Companies (IOCs) to reduce contracting cycle to an optimal level of not more than 180 working days.
A statement issued by the NNPCL on the pact indicated that the deal was aimed at reducing the current best effort performance contracting cycle for open competitive tender, selective tender, and single sourcing tender from 327, 333, and 185 working days respectively, to 180, 178, and 128 working days respectively.
Generally, an optimized 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 company stated: “Major significant of an optimized 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, who 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”, it added.
Speaking at the MoU signing, the GCEO of NNPCL, Mr. Mele Kyari, said the agreement heralded exciting times for the nation’s oil and gas industry and represented a bold testimony that the company is plunging into the “future of hope, productivity and success.”
Kyari, who was represented at the event by the company’s Executive Vice- President, Upstream, Mrs. Oritsemeyiwa Eyesan, maintained that with oil and gas as the bedrock of Nigeria’s economy, there was the need to get the contracting process in the industry right in order to stimulate the nation’s economic growth
In his remarks, the Executive Secretary of the NCDMB, Engr. Simbi Wabote, described the MoU as a way forward and a critical step towards enhancing the nation’s crude oil production.
