Why NCDMB is making the very bold pitch
In a bold move to revolutionise the oil and gas sector, the Nigerian Content Development and Monitoring Board (NCDMB) has proposed an innovative strategy: the introduction of an annual 'Final Investment Decision (FID) Week'. This initiative, spearheaded by the Executive Secretary of NCDMB, Engr. Felix Omatshola Ogbe, aims to concentrate the signing of FIDs into a single week each year, creating a focused period for major players in the industry to commit to new projects.
The significance of this proposal on Tuesday 5 November 2024 at the 2024 African Energy Week (AEW), holding at Cape Town, South Africa cannot be overstated.
By aligning the decision-making process with a dedicated timeframe, the NCDMB is fostering a sense of urgency and efficiency that could dramatically improve project execution within the sector. This approach promises to streamline operations, reduce bureaucratic delays, and accelerate the pace at which projects move from conception to reality.
Proposing the FID Week concept is not just about speed; it’s about strategic growth and sustainability. It encourages indigenous companies to step up and take on roles traditionally filled by expatriates, thereby building in-country capacity and expertise. This aligns with the broader goals of the NCDMB to enhance local participation and ensure that the benefits of the oil and gas sector are more evenly distributed among Nigerian businesses and communities.
At the AEW event lasting from 4 to 8 November, Engr. Ogbe was represented by the Director, Projects Certification and Authorisation Division (PCAD) Engr. Abayomi Bamidele. Through this representative, the executive secretary was able to harp about operating companies and the limited number of new projects in the Nigerian oil and gas industry. It is a worrisome issue which contributed to Nigeria experiencing low crude oil income being that production has been dissatisfactory.
In Engr. Ogbe’s vision, the Nigerian oil and gas industry ought to have at least one or two final investment decisions on major projects to be signed every year. This will catalyse activity in the local service sector and the national economy and ultimately increase crude oil and gas production and revenue for the country.
Three Presidential Directives (PDs) approved in March 2024 already offers a platform to have a FDI week implemented successfully. In October, the Board’s head said that his organisation is now in full compliance with the Presidential Directive on Local Content Compliance Requirements, 2024 (EO 41).
It is a compliance feature which wants to make sure that only local services and their proven exceptional abilities can participate in oil industry tenders. One other presidential directive focuses on the Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 (EO 42) and NCDMB says it is highly on top of this.
NCDMB has applied the Presidential Directives in approving five oil and gas projects with a production value of 1 billion standard cubic feet of gas per day and 350,000 barrels of crude oil per day which are currently underway.
Other NCDMB staff members also made presentations at this year’s African Energy Week (AEW) like Director of Finance and Personnel Management, Mr. Ifeanyi Ukoha, the Manager, Institutional Strengthening, Engr. Obongo Dokubo and the Supervisor Upstream, Engr. Bashir Ahmed.
Their discussion touched on the core operations and initiatives of their agency.
The proposal to have the FDI week has already garnered attention and is under consideration by key stakeholders, including the Special Adviser to President Bola Tinubu on Energy, Mrs. Olu Verheijen, and leaders of major operating companies.
If the idea comes to reality, the NCDMB’s vision will reflect proactiveness and being pragmatic. It would be an approach to industry challenges, one that could set a new standard for project execution efficiency not just in Nigeria, but across the African continent.
