PETAN Raises Alarm Over Tender Delays Impacting Oil Sector

Indigenous oil and gas service companies, represented by the Petroleum Technology Association of Nigeria (PETAN), have raised significant concerns regarding prolonged tender approval cycles and delayed payments by upstream producers. These issues contradict President Bola Tinubu's Presidential Directives on Local Content, introduced in March 2024, which aim to expedite oil and gas contract timelines and enhance Nigeria's crude oil production.

Dr Joan Faluyi, Publicity Secretary of PETAN, highlighted that the lengthy cycle times for tender approval, award, and mobilization distort pricing and execution. She pointed out that local banks impose double-digit interest rates, complicating financing for projects that span five years.

Furthermore, Faluyi noted that external factors, such as foreign exchange fluctuations and geopolitical events, can render previously quoted tenders unfeasible. She called for improved bid processing and better alignment of financing with project timelines to enable local firms to compete effectively.