The Nigerian Content Development and Monitoring Board has announced plans to unveil new Contracting Cycle Guidelines for the oil and gas industry, aimed at accelerating project timelines, driving investments, and boosting crude oil production in line with directives issued by President Bola Tinubu.
The Executive Secretary of NCDMB, Felix Omatsola Ogbe, disclosed this information during a two-day workshop in Lagos hosted by the Project Certification and Authorization Directorate of the board.
The conference brought together oil and gas companies from around the world, along with service providers, to review and comply with the revised regulations of the Nigerian Oil and Gas Industry Content Development Act.
The Director of Project Certification and Authorization, Abayomi Bamidele, who represented Ogbe at the conference emphasized the NCDMB’s commitment to fostering the growth of businesses.
He mentioned that input from stakeholders at the workshop will be included prior to the release of the final guidelines at the Practical Nigerian Content Workshop happening on December 3-5, 2024, at the Nigerian Content Tower in Yenagoa, Bayelsa State.
In the first quarter of 2025, the NCDMB intends to conduct a technical workshop to educate personnel from operating companies on effectively handling technical documents needed for the contracting process.
The recently established contracting rules aim to enforce three critical presidential commands.
Compliance with Local Content: Making sure local content laws are followed.
Reduction of expenses and time for contracting: Simplifying procedures to finalize oil and gas agreements in six months.
Tax Benefits and Exclusions: Assisting businesses in speeding up projects and leveraging updated tax incentives.
Ogbe stated that the instructions are intended to prevent some service providers from charging high prices, maintain consistent policies, and encourage prompt final investment decisions (FIDs).
His suggestion was to sign at least one or two FIDs each year at major oil and gas conferences to keep the sector moving forward.
The NCDMB has amended the contractual timelines in the Memorandum of Understanding with the NNPC and overseas operators agreed in September 2023.
Stating the significance of the new measures, Ogbe mentioned that the board is collaborating closely with NNPC and its upstream investment arm, NUIS, to speed up project implementation. In spite of obstacles, the NCDMB is dedicated to aiding companies in optimizing the incentives outlined in the directives and promoting sustainable growth in the oil and gas industry.