The president of Nigeria, Bola Ahmad Tinubu has issued a directive to reduce the timeline for oil and gas contracts, from three years to six month. This was disclosed by the president’s special adviser on energy, Olu Verheijen, during a ministerial press briefing on March 8, in Abuja.
Benchmarking and analysis revealed the contract cycle takes up to 36 months, she explained.Compressing the cycle to less than six months corresponds with global averages, she added.
“This will expedite the delivery of oil and gas products to the market and enhance overall value for the country,” Verheijen said.
She said it was necessary to address the key issues in the sector, in other to attract capital, as investors need assurance before they commit.
“So, if gas suppliers are not making any investment because the fiscal terms of the business environment is a very difficult one in which to invest in, then it will be difficult to continue to mature mainstream projects and downstream projects because you have to deal with the ab initio problem which is gas supply,” she said
“And that is exactly what President Bola Ahmed Tinubu has done by fast-tracking these policy directives to ensure that we have sufficient gas supply whether we’re trying to export, whether we’re trying to compress natural gas or liquefied for domestic use, whether we’re trying to have floating energy as an alternative ways of getting gas into the market, all of those things are enabled by these policies.” She explained.
