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On 10th December, 2009 the GMD of Nigerian National Petroleum Corporation (NNPC) and the Chief Executive Officers (CEOs) of International/ Indigenous oil firms signed the NipeX Memorandum of Understanding (MoU) at the NNPC Towers, Abuja.

The signing ceremony was an expression of readiness to adopt electronic contracting in the upstream sector of the nation’s oil and gas industry. The signing of the MoU was aimed at securing a clear framework under which all parties using NipeX would collaborate to ensure the successful management and operation of NipeX in line with its goals and objectives.

The oil companies represented at the occasion included: Addax, Total, Exxonmobil, ConocoPhillips, Petrobras, Chevron/Texaco. Pan Ocean Oil and Conoil among others. Speaking at the event, the Group Managing Director of NNPC, Dr. Mohammed Sanusi Barkindo, observed that NipeX had continued to sustain the synergy that exists between the Corporation and its Partners since its establishment in December 2006.

He affirmed that NipeX would facilitate the participation of indigenous Suppliers in the tendering process, thereby increasing Nigerian Content and achieving overall contracting cost reduction for the industry. He went on to say that the ceremony was happening at a critical time for the Nigerian oil and gas industry as it prepares for the transformation that would ensue from the passage of the Petroleum Industry Bill (PIB), which he said would impact positively on the industry.

The GMD further remarked that the operations of NipeX had integrated the activities of the Operators, Suppliers, NAPIMS, Nigerian Content Division (NCD) and Department of Petroleum Resources (DPR) to exploit synergies and drastically reduce contract cycle time. Subsequently, he urged all Stakeholders to ensure the continuous success of the NipeX system and utilize it for all aspects of the contracting process. Henceforth, Suppliers will only be resourced by the Operators from the NipeX database for contract opportunities. Such contracts initiated by the Operators which require NAPIMS approval will be progressed electronically through NipeX.

In his remarks, the Group Executive Director (GED), Exploration and Production of the Corporation and Chairman, Steering Committee of NipeX, Engineer Phillip Chukwu, commended the management of NAPIMS/NipeX for the establishment of the e-contract system, which he acknowledged would facilitate the contracting process. With the signing of the MoU and support from all Stakeholders, NipeX will continuously deliver an electronic contracting system that is fastefficient and transparent.