Nigerian National Petroleum Company Limited (NNPCL) and Nigerian Content Development & Monitoring Board (NCDMB), yesterday, signed a Memorandum of Understanding with international oil companies (IOCs) to reduce the contracting cycle to 180 days (about six months). On paper, a contract cycle in the oil and gas sector in Nigeria takes about 10 months, and sometimes drags on for as long as 10 years.
The long-drawn cycle, a major contributor to high unit cost of production per barrel of crude oil in the country, is usually process induced, occasioned by bureaucracy.
NNPCL, in a statement, described the MoU executed in Abuja as demonstration of commitment to the efficiency mandate enshrined in the Petroleum Industry Act (PIA), which is hinged on developing an industry framework for optimised contracting cycle.
It said an optimised cycle is expected to improve ease of doing business, reduce cost, and drive efficiency. This will, consequently, translate to production growth, increased revenues and improved profitability.
The national oil company, which is pitching the move as leeway to the double-digit economic growth rate canvassed by the Federal Government, said the move would generate tremendous value for all stakeholders.
Nigerian National Petroleum Company Limited (NNPCL) and Nigerian Content Development & Monitoring Board (NCDMB), yesterday, signed a Memorandum of Understanding with international oil companies (IOCs) to reduce the contracting cycle to 180 days (about six months). On paper, a contract cycle in the oil and gas sector in Nigeria takes about 10 months, and sometimes drags on for as long as 10 years.
The long-drawn cycle, a major contributor to high unit cost of production per barrel of crude oil in the country, is usually process induced, occasioned by bureaucracy.
NNPCL, in a statement, described the MoU executed in Abuja as demonstration of commitment to the efficiency mandate enshrined in the Petroleum Industry Act (PIA), which is hinged on developing an industry framework for optimised contracting cycle.
It said an optimised cycle is expected to improve ease of doing business, reduce cost, and drive efficiency. This will, consequently, translate to production growth, increased revenues and improved profitability.
The national oil company, which is pitching the move as leeway to the double-digit economic growth rate canvassed by the Federal Government, said the move would generate tremendous value for all stakeholders.(https://guardian.ng/)
