The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu submitted rececently that there is a collaborative approval process planned between the Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian National Petroleum Corporation (NNPC) will ensure the achievement of Federal Government’s targeted six months contract approval cycle time.
The Minister added that this will reduce the cost of crude oil production in the country. NCDMB and NNPC plan to start using the one-stop shop arrangement for reviewing and approving oil industry projects and contracts in a bid to shorten the industry contracting cycle before the end of this year.
The Minister who disclosed the collaboration in Yenagoa, Bayelsa State, said: “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.”
Kachikwu commended the collaboration between NCDMB and the Department of Petroleum Resources (DPR) particularly on the development of modular refineries, which would help to address the perennial shortage of petroleum products, create jobs and minimize the scourge of illegal refining, vandalism and theft.
The Minister urged the board to collaborate with other relevant institutions including Nigerian universities, some of whom have developed prototypes of modular refineries to aid the industry in Nigeria.