Adewale Sanyaolu
The Nigerian Content Development and Monitoring Board (NCDMB) and the Oil Producers Trade Section (OPTS), the umbrella body of major international and indigenous operating oil companies, have sealed a pact on a Service Level Agreement (SLA) aimed at reducing the often protracted industry contracting cycle.
The SLA commits the 28-member OPTS companies to comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, essentially to submit to NCDMB documents including their quarterly job forecasts, Nigerian content plans, bidders lists, Nigerian content evaluation criteria and Nigerian content technical bids, among other relevant information in relation to industry contracting and procurement cycles.
On the other hand, the board pledged to respond on specific timelines and committed that should it fail to meet the set deadlines, the companies can proceed with their tendering processes after duly informing the board.
The Executive Secretary, NCDMB, Mr. Simbi Wabote, signed on behalf of the board, while the Managing Director of ExxonMobil Nigeria, Mr. Paul McGrath, signed on behalf of OPTS. The Managing Director of the Nigerian Agip Oil Company (NAOC), Mr. Massimo Insulla; Managing Director of Chevron, Mr. Jeff Ewing, and the Managing Director of Total Exploration and Production Nigeria, Mr. Nicolas Terraz, witnessed the event.
Other industry leaders that participated in the event as well as a prior meeting to discuss areas of collaboration with operators and NCDMB on reducing the duration of industry tendering process included the Commercial Director of Shell Petroleum Development Company (SPDC), Mr. Martin Foley, who represented the Managing Director of the company, and the Group General Manager of National Petroleum Investment Management Services (NAPIMS), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), Mr. Roland Ewubare.
The SLA with OPTS is sequel to the one entered between the board and the Nigerian Liquefied Natural Gas Company (NLNG) in May 2017, which was the first between a regulator and another entity in the Nigerian oil and gas industry.
Speaking at the event, the Executive Secretary explained that the SLA with the OPTS was in furtherance of the board’s efforts to meet the target set by the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, for the industry contracting cycle to be shortened to six months.
Through the efforts of NCDMB, the cycle had been cut significantly to 14 months from 24-36 months.
Wabote stressed that operations of the oil and gas industry were time sensitive, adding that a shortened contracting cycle would cut the cost of projects considerably.
He noted that the SLA signed with NLNG had improved the turn-around time of approvals between the two establishments, informing that the board was working to sign a similar agreement with the Indigenous Petroleum Producers Group (IPPG).
In his comments, the Managing Director of ExxonMobil thanked the Executive Secretary for the initiatives he had introduced since assuming office a year and half ago. He stated that OPTS members contributed in the development of SLA and will ensure compliance.