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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:
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Management of Nigeria Government Assets |
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Prosecution of Nigeria Government Agenda |
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Defining operational direction and |
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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.
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NAPIMS specifies minimum expenditure during the exploration period. |
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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. |
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NAPIMS review operators’ request to finance petroleum operations from external sources. |
2.) OPERATIONAL AND FINANCIAL CONTROLS.
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NAPIMS reviews and approves each contractor's annual work programme & budget and reported performance. |
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NAPIMS reviews contracts in excess of contractor’s limit. |
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NAPIMS reviews project costs. |
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NAPIMS carries out annual cost verification exercise. |
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NAPIMS verifies crude oil allocation for payment of royalty, cost oil, ppt & profit through cost recovery committee.
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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:
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Cost effectiveness in project execution. |
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Enhancement of Nigerian content |
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Project Cost controls and timely delivery. |
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Compliance with due process |
- NAPIMS constitutes a separate multi - discipline Audit team to carry out periodic audit of all major projects in order to:
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Verify expenditure and system of internal controls. |
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Generate an asset register. |
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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:
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Compliance with the Joint Operating Agreements (JOA). |
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System weakness; if any, and make recommendations to correct them. |
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Performance Measurement, Bench-marking and Value Analysis. |
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Joint Venture (JV) Upstream Monitoring
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Project Management Knowledge Areas
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