The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian National Petroleum Corporation (NNPC) will before the end of 2018 start using a one-stop shop arrangementfor reviewing and approving oil industry projects and contractsin a bid to shorten the industry contracting cycle.

NNPC

The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu announced this on Thursday in Yenagoa, Bayelsa State at a meeting with top management of the NCDMB at its headquarters.

The collaborative approval process between NCDMB and NNPC, he explained, will ensure that the target six months contract approval cycle time is achieved, while the cost of crude oil production will also reduce.

According to him, “if you look at the cost components we are trying to drive down; from $28 per barrel, it is now $23 and we are targeting $15. We can’t achieve that if our bureaucracy is slow.”

The Minister commended NCDMB for adopting the use of Service Level Agreements (SLAs) with its key stakeholders, promising to ensure that other agencies within the Ministry of Petroleum Resources adopt the initiative which will help to drive efficiency within organisations.

The Board signed the first SLA with the Nigerian Liquefied Natural Gas Company (NLNG) in May 2017 and is preparing to sign similar agreement with the Oil Producers Trade Section (OPTS) – the umbrella body of major international and indigenous operating oil companies.

The SLA with NLNG provides specific timelines under which the Board must conclude requested reviews and approvals.

Under the SLA, NLNG can proceed with its projects if the Board fails to respond at the expiration of set timelines.

Kachikwu said, “It takes a lot of courage for you to put a guaranty and tell people that if I don’t respond within a period, take it as approved. I will like to see this type of concept among all our parastatals. We can borrow a leaf from this.”

He reiterated that the Board had enjoyed high quality leadership from inception, which helped the agency record sterling achievements over the years.