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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.

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

Project Management Knowledge Areas

© 2016 NAPIMS
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