FG To Reduce Oil and Gas Contracting Cycle To Six Months

The federal government has unveiled plans to cut from two years to six months the period for completion of the bidding process and the award of contracts for the execution of oil and gas projects.
In the Nigerian oil and gas industry currently, contracting cycle stretches between two and four years.

The Minister of State for Petroleum Resources, Ibe Kachikwu, stated this recently in a speech he delivered at the stakeholders’ interactive workshop on Nigerian Content Policy organized by the Senate Committee on Petroleum Resources (Upstream) in Calabar, Cross Rivers State.

According to a statement from the Nigerian Content Development and Monitoring Board, NCDMB, Kachikwu identified the long contracting cycle as a major contributor to the high cost per barrel of the Nigerian crude oil compared with other OPEC member- countries.

The minister, represented by the Group General Manager, of NAPIMS, Sajebor Dafe Stephen, stated that the contract approving entities were already implementing his charge to strategise and develop a single contracting procedure which will soon be issued to the industry.

RELATED ARTICLESMORE FROM AUTHOR