NAPIMS Roles & Responsibilities

Over the years, we have noticed that many people have different understanding of what we are, what we do and certainly how we operate; hence, we have decided to write-out and display the correct roles, responsibilities and oversight functions of NAPIMS to the general public, so as to avoid any further misunderstandings of our actions.
NAPIMS is a partner in the Joint Venture (JV) assets and the Concessionaire in the Production Sharing Contract (PSC) arrangements.

NAPIMS is neither an operator nor a regulatory body of the industry, contrary to the notion held by some sector of the public; rather, NAPIMS manages the Federal Government of Nigeria (FGN) interests in the oil and gas industry.

Subsequently, the roles and responsibilities of NAPIMS can be defined as follows:​

  • Management of Nigeria Government Assets
  • Prosecution of Nigeria Government Agenda
  • Defining operational direction and
  • Spearheading new technology application in the oil and gas industry

NAPIMS: Oversight Functions

In the same light, we can describe our oversight-functions, in the Nigerian oil and gas industry, as follows:

  1. FUNDING OF WORK PROGRAMME & PETROLEUM OPERATIONS.
    • NAPIMS specifies minimum expenditure during the exploration period.
    • NAPIMS requires PSC contractors to submit a performance bond, to cover the amount agreed, as the minimum financial commitment for the phases of exploration period.
    • NAPIMS review operators’ request to finance petroleum operations from external sources.
  2. OPERATIONAL AND FINANCIAL CONTROLS.
    • NAPIMS reviews and approves each contractor's annual work programme & budget and reported performance.
    • NAPIMS reviews contracts in excess of contractor’s limit.
    • NAPIMS reviews project costs.
    • NAPIMS carries out annual cost verification exercise.
    • NAPIMS verifies crude oil allocation for payment of royalty, cost oil, ppt & profit through cost recovery committee.
  3. PROJECT MONITORING / AUDIT.
    • NAPIMS nominates a multidiscipline project monitoring team for all major development projects, to work with the Operator project teams, in a “task force” in order to ensure:
      •  Cost effectiveness in project execution.
      • Enhancement of Nigerian content.
      • Project Cost controls and timely delivery.
      • Compliance with due process.
    • NAPIMS constitutes a separate multi - discipline Audit team to carry out periodic audit of all major projects in order to:
      • Verify expenditure and system of internal controls.
      • Generate an asset register.
      • Create data bank for bench-marking and cost estimation.
  4. VALUE FOR MONEY AUDIT.
    • Periodically NNPC commissions consultants / firms of chartered accountants to carry out value for money audit of the JV operating companies in order to advise on:
      • Compliance with the Joint Operating Agreements (JOA).
      • System weakness; if any, and make recommendations to correct them.
      • Performance Measurement, Bench-marking and Value Analysis.
      • Joint Venture (JV) Upstream Monitoring

Project Management Knowledge Areas

 


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