NCDMB clears the path to speedy oil projects

• Binds NNPC, IOCs in SLAs

Sopuruchi Onwuka

In a first regulatory audacity of its kind, the Nigerian Content Development and Monitoring Board (NCDMB) has committed the biggest players in the Nigerian petroleum industry to speedy execution of approved projects and programmes.

The regulator which ensures economic value generation from the activities of the petroleum industry in the country committed the national oil company, Nigerian National Petroleum Company (NNPC) Limited and its biggest partners to an agreement that dismantles all roadblocks to swift approval processes.

Under the terms of the Service Level Agreements (SLAs) which was solidified with a Memorandum of Understanding (MoU) signed with the NNPC and five international oil companies, the NCDMB intends to shorten the contracting cycle, spur speedy development and production of petroleum resources and improve revenue generation for the government.

Executive Secretary, Engr Simbi Wabote, declared at the event which was hosted in Abuja on Monday that the goal of the agreements is to quickly ramp up Nigeria’s declining crude oil production, ensure compliance with the provisions of the Nigerian Content Act, and optimize existing capacity in the industry.

The Oracle Today reports that the SLAs with the NNPC, Shell, TotalEnergies, ExxonMobil, Chevron and Eni brings all the key players in the upstream and midstream petroleum industry into full commitment in addressing the ancient problem of approval delays lamented by operators as a killing factor in the local operating environment.

The NCDMB had earlier committed other industry groups and companies to deadlines and benchmarks in driving projects and work programmes in the industry.

Engr. Wabote led the signatures to Monday’s SLAs. The Executive Vice President in charge of Upstream Division of the NNPC Limited, Mr. Oritsemeyiwa A. Eyesan signed on behalf of the national oil company. Managing Director of Shell Petroleum Development Company (SPDC) Limited and Country Chair of Shell Companies in Nigeria (SCiN), Mr. Osagie Okunbor, signed for the group. Chairman and Managing Director of ExxonMobil’s affiliates in Nigeria, Mr. Shane Harris, also signed for his company.

The Director of Joint Ventures, Mr. Iwueze Cosmas, signed for Chevron affiliates in Nigeria. Managing Director, Mr. Fabrizio Bloomfied, signed for Nigerian Agip Oil Company Limited. And the Executive Director in charge of Joint Ventures at Total Exploration and Production Nigeria, Mr. Obi Imemba, signed for TotalEnergies.

Engr Wabote stated that the overall goal is to conclude the oil and gas industry’s tendering to contract award processes within six months, affirming his conviction that the target is realistic with all key parties now on board with the execution of the SLA.

He expressed delight that NNPC Limited signed up to the MoU, being the senior partner of the joint ventures and concessionaire of the production sharing contracts (PSC) arrangements that govern the operations of the industry.

It would be recalled that NCDMB first introduced the 15-day Rule to the industry in 2017, when it promised that it would respond within 15 working days to any formal request for approvals in relation to projects execution. The rule was later formalized with an SLA in May 2017 with Nigeria LNG Limited which now holds the fastest approval records with its NLNG Train7 project.

Engr Wabote pointed out that “the industry found the outcome impressive leading to the Independent Petroleum Producers Group (IPPG) signing the SLA in 2018 and Oil Producers Trade Section (OPTS) thereafter.”

He restated the resolve of the NCDMB to remain strong as a business-enabling regulator that is already recognised with awards as the most efficient MDA in 2022 by the Presidential Enabling Business Environment Council (PEBEC).

The agency is also rated PLATINUM by the Bureau for Public Service Reforms in recognition of its self-imposed reforms of processes.

In pledging to lead the charge, Engr Wabote declared that the SLA would deliver on its goals and targets, adding that the NCDMB would deliver its own part of the agreement.

The Oracle Today reports that NCDMB signed the pioneering SLA signed with the Nigeria LNG in 2017, introducing a performance pact between a regulator and another entity in the oil and gas industry.

The template has since been adopted for managing documentation, contracting and expatriate quota applications between the Board and international and local operating companies.

The first SLA obligated NLNG to submit to the NCDMB documents like the Quarterly Job Forecast, Nigerian Content Plan, Bidders List, Nigerian Content Evaluation Criteria, Nigerian Content Technical Bid among others, while the board has to respond on specific timelines.

An operating company could proceed with its tendering and sundry processes should the regulator fail to respond in accordance with the provisions of the SLA. However, such an option would only be legitimate after notifying the regulator of the move in writing or by email.