NCDMB, OPTS sign agreement to shorten contract cycles
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 signed a Service Level Agreement (SLA), aimed at shortening 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, they are to submit to NCDMB documents like their Quarterly Job Forecasts, Nigerian Content Plans, Bidders Lists, Nigerian Content Evaluation Criteria, 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, Simbi Wabote, signed on behalf of the Board, while the Managing Director, ExxonMobil Nigeria, Paul McGrath, signed on behalf of the OPTS. The Managing Directors, Nigerian Agip Oil Company, Massimo Insulla; Chevron Nigeria Limited, Jeff Ewing; Total Exploration and Production Nigeria, Nicolas Terraz witnessed the event.
Speaking, Wabote explained that the agreement 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 the NCDMB, the cycle had been cut significantly to 14 months from 24 to 36 months.
He noted 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 added that the SLA signed with the 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).Commenting, ExxonMobil’s McGrath commended Wabote for the wonderful initiatives he had introduced since assuming office a year and half ago.
No comments yet