NCDMB, NLNG sign Service Level Agreement on compliance, timelines

…SLA to become template for industry

The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Liquefied Natural Gas Company (NLNG) signed a Service Level Agreement (SLA) on Wednesday, committing to compliance with the provisions of the Nigerian Content Act and timely approvals of documents respectively.

The Executive Secretary, NCDMB, Engr. Simbi Wabote and Managing Director of NLNG, Engr. Tony Attah signed on behalf of their organisations in Abuja.

The SLA, first of its kind to be entered between a regulator and another entity in the oil and gas industry would be adopted as the template for managing documentations, contracting and expatriate quota between the Board and international and local operating companies.

The agreement obligates NLNG to submit to the NCDMB documents like the Quarterly Job Forecast, Nigerian Content Plan, Bidders List, Nigerian Content Evaluation Criteria, Nigerian Content Technical Bid among others, while the Board has to respond on specific timelines. Should the Board fail to respond in accordance with the provisions of the SLA, NLNG can proceed with its tendering process after informing the Board in writing or email.

Speaking at the event, the Executive Secretary acknowledged that NLNG’s operations were time sensitive, adding that the SLA would ensure that “NLNG is not exposed to violations and NCDMB is not a blocker to the business.” He stated that the SLA was a key strategy of shortening the contracting cycle, cutting the cost of projects and improving compliance with the Nigerian Content Act.

Speaking further, Wabote explained that activities of the NCDMB impacts on the business of the NLNG while the company’s operations also influence how the Nigerian Content Act is viewed by stakeholders. He also canvassed for greater collaboration between the two organisations, requesting for NLNG’s support towards the development of a drydock facility in the Niger Delta region, to cater for the maintenance of big vessels, including LNG carriers.

In his comments, the MD NLNG commended the Board for the speedy development of the SLA, describing it as an innovative way of addressing the company’s concerns. He emphasized that NLNG was bound to comply with provisions of the Nigerian Content Act but was also pressed by the urgency required in making decisions for its business.

Attah noted that the SLA provided an opportunity for consolidating the company’s collaboration with the Board and delivering on its mission of contributing significantly to the Nigerian economy. He recalled that NLNG recorded high Nigerian Content achievements in the construction of its last six ships as goods worth over $10m were exported from Nigeria to South Korea and utilized on the ships.

On the development of drydock facilities, Attah also promised to work with the Board, stating that the company had previously constituted a consortium to identify and assess possible sites but was yet to make appreciable progress.