NCDMB to Launch New Contracting Cycle Guidelines for Oil & Gas Sector in Line with Presidential Directives
The Nigerian Content Development and Monitoring Board (NCDMB) is set to introduce new Contracting Cycle Guidelines for the oil and gas industry, adhering to President Bola Ahmed Tinubu’s directives aimed at expediting contract timelines, boosting sector investments, and enhancing Nigeria’s crude oil production. This announcement was made by NCDMB’s Executive Secretary, Engr. Felix Omatsola Ogbe, at a two-day workshop held in Lagos.
Organized by NCDMB’s Project Certification and Authorization Directorate (PCAD), the workshop provided an overview of the new guidelines to both international and indigenous oil and gas operators and service providers.
Representing the Executive Secretary, Engr. Abayomi Bamidele highlighted the importance of aligning the guidelines with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the Presidential Directives, underscoring NCDMB’s commitment to supporting industry growth. Feedback from stakeholders will be incorporated before the final launch at the Practical Nigerian Content Workshop from December 3–5, 2024, in Yenagoa, Bayelsa State.
The Presidential Directives focus on Local Content Compliance, Contracting Cost and Timelines, and Tax Incentives for Oil and Gas Companies. To streamline processes, NCDMB has reduced its contracting cycle touchpoints from nine to five for open and selective tenders and to four for single-source contracts.
This is part of a broader goal to cut contract conclusion times from 180 days to six months, with reduced steps for NCDMB and a revamped Memorandum of Understanding (MoU) with the Nigerian National Petroleum Company Ltd (NNPC).
To further support the directives, NCDMB will conduct technical workshops in early 2025 to train industry personnel on document processing for oil and gas contracting. NCDMB also aims to eliminate non-performing intermediaries and create a transparent in-country capacity audit every two years. In line with global standards, NCDMB is proposing cost templates, fostering local and foreign joint ventures, and encouraging at least two final investment decisions (FIDs) annually to sustain sector momentum.
The workshop also featured technical sessions, and stakeholders expressed appreciation for NCDMB’s openness to industry input on the evolving guidelines.
