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:
- FUNDING OF WORK PROGRAMME & PETROLEUM OPERATIONS.
OPERATIONAL AND FINANCIAL CONTROLS.
- 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.
PROJECT MONITORING / AUDIT.
- 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.
VALUE FOR MONEY 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.
- 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