The Petroleum Technology Association of Nigeria (PETAN) has publicly accused petroleum industry regulators of contributing to significant delays in oil and gas contracting processes, undermining a key Presidential directive aimed at streamlining the sector.

Speaking at the Nigeria International Energy Summit (NIES) 2026 in Abuja, PETAN Chairman, Wole Ogunsanya, expressed concerns that contract processes are not being concluded within the six-month timeframe stipulated by President Tinubu's Executive Order (OE) 42, issued in March 2024. This order was designed to reduce contracting costs and timelines as part of broader reforms in the oil and gas sector.

"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 stated, highlighting a disconnect between official reports and the on-the-ground experiences of industry participants.

PETAN is actively monitoring current tenders and has observed that several projects planned for commencement in 2026 and 2027 are currently stalled. This delay is attributed to excessively long contracting cycles, hindering the progress and development of crucial energy infrastructure.

Ogunsanya pointed out that despite a noticeable surge in contracting activities – including expressions of interest, tenders, pre-qualifications, and technical and commercial evaluations since the fourth quarter of 2024 – execution gaps persist. This suggests that the initial stages of the contracting process are moving forward, but significant bottlenecks are preventing projects from reaching completion.

Several factors contribute to these delays. Prolonged internal approval processes within regulatory bodies, delays in reaching Final Investment Decisions (FIDs) for major projects, and slow commercial negotiations between stakeholders are all significant impediments. Extended regulatory and compliance procedures, coupled with persistent funding and financial close challenges, further exacerbate the problem.

The implications of these delays are far-reaching. Delayed projects translate to lost revenue for the government, missed opportunities for local contractors, and potentially jeopardize Nigeria's ability to meet its energy needs and international commitments. The inability to conclude contracts within the mandated six-month period undermines investor confidence and could discourage future investment in the Nigerian oil and gas sector.

PETAN's public criticism serves as a call to action for both regulators and the government to address these systemic issues. Streamlining internal processes, expediting approvals, and fostering a more collaborative environment between regulators, operators, and contractors are essential steps toward achieving the President's vision of a more efficient and competitive energy sector.

Industry stakeholders will be watching closely to see how the government responds to PETAN's concerns and what measures will be implemented to ensure that the six-month contract timeline becomes a reality.