.As it harps on the need to follow presidential 6-month executive order
CHIGOZIE AMADI
The Chairman of the Petroleum Technology Association of Nigeria (PETAN), Engr. Wole Ogunsanya, has called on the petroleum industry regulators to urgently deal with the delays in oil and gas contracting processes, stressing the need to follow the presidential directive requiring tenders to be concluded within six months.
Ogunsanya made this call during his presentation at the opening ceremony of the Nigeria International Energy Summit (NIES) 2026 in Abuja
According to him, the industry regulators were yet to comply with President Bola Tinubu’s instruction aimed at accelerating project execution across the energy sector.
Recall that President Tinubu in March 2024, issued Executive Order (OE) 42 mandating reduction of petroleum sector contracting costs and timelines, 2024, being part of a wider set of oil and gas reforms signed by the administration.
It would be recalled that the NCDMB leads implementation on local content and contracting timelines, while the NUPRC, NUIMS, Ministry of Petroleum Resources, and Ministry of Finance Incorporated (MOFI) are connected to approvals and compliance.
The PETAN Chairman in his presentation therefore said, “We are not concluding contract processes in six months as directed and reports sent to the Presidency often fail to reflect the realities faced by industry players.
Ogunsanya disclosed that PETAN is currently monitoring ongoing tenders, emphasising that several projects scheduled to commence in 2026 and 2027 remain stalled due to prolonged contracting cycles.
Providing the findings a study conducted by PETAN, he said the current rate of contract awards falls significantly short of the Presidential benchmark of completing tenders within six months, with most contracts structured for five years and a possible two-year renewal.
Ogunsanya said execution gaps persist despite a significant increase in contracting activities involving expressions of interest, tenders, pre-qualifications, and technical and commercial evaluations since the fourth quarter of 2024.
He identified prolonged internal approvals, delayed Final Investment Decisions (FIDs), slow commercial negotiations, extended regulatory and compliance procedures, and funding and financial close challenges as major bottlenecks undermining project delivery.
The PETAN boss therefore called on the Presidency to give closer monitoring of the contracting process to ensure that awards and project execution align with presidential timelines, warning that continued delays could weaken investor confidence and slow sector growth.
