Mastering The Art Of Tendering: A Strategic Path To Securing Successful Bids In The Oil And Gas Industry

In Nigeria’s competitive oil and gas sector, effectively completing tendering processes is vital for companies aiming to secure bids and achieve profitability. Whether operating independently or with technical partners, the primary objectives are to secure invitations to tender, submit competitive bids, and win contracts.

The Nigerian government adopted tendering as the standard for awarding oil and gas licenses in1999 to enhance transparency and eliminate abuses associated with the previous discretionary system. Key advancements include the 2005 launch of NNPC’s online electronic center to streamline processes and the Nigerian Petroleum Exchange (NipeX), which became thecentral platform for tendering. Since January 1, 2010, all NUIMS tenders must be processed digitally through NipeX, requiring suppliers to register for access. The Nigerian Petroleum Exchange (NipeX) has many advantages for the Nigerian oil and gas industry, including:

• Efficiency

• Transparency

• Increased participation

• Improved governance

• Industry-standard database

• Lower contract processing costs

The process aims to ensure transparency, fairness, and competition, allowing companies to demonstrate their capabilities and secure contracts based on merit.

The tendering process in Nigeria’s oil and gas industry is overseen by regulatory bodies such as NUIMS, Operators, and the Nigerian Content Development and Monitoring Board (NCDMB). While the process traditionally took two to three years, recent reforms aim to accelerate it. Under the 2024 Presidential Directives on Local Content Compliance (EO 41) and on Reducing Petroleum Sector Contracting Costs and Timelines (EO 42), the contracting cycle has been shortened to six months. NCDMB Executive Secretary Felix Omatsola Ogbe confirmed the Board’s full compliance with these directives, emphasizing prioritization of local companies with proven capacities. These measures aim to attract investments, expedite project approvals, and boost Nigeria’s oil and gas sector and economy.

Challenges Companies Face in the Tendering Process

1. Complex Documentation Requirements:

Obstacle: Tender documents often come with extensive and complex requirements that can be overwhelming. Companies must dedicate significant time and resources to ensure compliance, which can detract from their ability to focus on core business activities.

Way-out / Solution: Implementing document management systems that can streamline the documentation process. These systems achieve successful bids, saving time and reducing errors.

2. Limited Resources and Expertise:

Obstacle: Smaller companies, in particular, may lack the necessary resources or technical expertise to compete effectively in large tenders. This can lead to missed opportunities or poorly crafted proposals that do not meet client expectations.

Way-out / Solution: Forming consortiums or allianceswith other businesses can pool resources andexpertise. By collaborating, companies can share knowledge, access specialized skills, and enhance their overall proposal quality without stretching their individual capacities.

3. Compliance and Regulatory Hurdles:

Obstacle: Navigating the regulatory requirements of different tenders can be a daunting task, with potential penaltiesfor non-compliancesuch as NCEC, NUPRC Permit, NMDPRA Permit, and Iso Certification, etc

Way-out / Solution: Creating a dedicated compliance team or using compliance management software can ensure that all proposals meet legal and regulatory standards. Regular training sessions can also keep teams updated on changes in regulations, minimizing the risk of non- compliance.

Developing a Comprehensive Tendering Strategy

Developing a tendering strategy in Nigeria’s oil and gas sector requires a comprehensive approach to meet legal, regulatory, and operational requirements. Here’s how to proceed:

1. Understand the Regulatory Environment

Nigeria’s oil and gas sector is heavily regulated. Key regulations and institutions to consider include:

• Local Content Law (Nigerian Content Development and Monitoring Board – NCDMB): Comply with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which mandates local participation in projects.

• NUPRC: Ensure registration with the Nigerian Upstream Petroleum Regulatory Commission.

2. Conduct Market Research

Identify Opportunities: Research upcoming projects and identify potential clients (e.g., Nigerian

National Petroleum Corporation, International Oil Companies, and indigenous operators).

Analyze Competition: Understand the strengths and weaknesses of competitors bidding for similar contracts.

3. Competitor Analysis

• Identify Competitors: List key competitors likely to bid on the same project and analyze their strengths and weaknesses.

• Benchmarking: Compare your strengths and resources against those of your competitors, identifying areas where you can offer a superior value proposition.

• Learn from Past Tenders: Study successful and lost bids on similar projects to understand wha tmade your bid appealing to clients and what not.

4. Build a Compliant Tendering Framework

Prequalification

Vendor Registration: Register with platforms such as NIPEX (Nigerian Petroleum Exchange).

Document Preparation: Ensure up-to-date documentation, including:

• Certificate of Incorporation (CAC).

• Local Content Certification.

• Tax Clearance Certificate.

• Health, Safety, and Environmental (HSE) certifications.

Proposal Preparation

• Understand Bid Requirements: Thoroughly review the tender documents to align with technical and financial requirements.

• Highlight Value Proposition: Emphasize local content compliance ,technical expertise, cost-efficiency, and HSE practices.

• Use Bid Templates: Create clear and concise proposals tailored to each client.

Pricing Strategy

Competitive Analysis: Ensure pricing is competitive while maintaining profitability.

Risk Allocation: Account for potential risks, such as inflation, currency fluctuations, and operational delays.

• Cost Estimation: Conduct a thorough cost analysis ,covering all materials, labor, overheads, and contingencies.

• Competitive Pricing: Aim for a price that is both competitive and sustainable, ensuring profitability while remaining attractive to the client.

• Flexible Pricing Options: If possible, offer flexible pricing structures, such as milestone payments to make the bid more appealing

5. Leverage Local Partnerships

Form joint ventures or partnerships with local firms to enhance local content compliance and operational capabilities.

6. Engage Stakeholders

• Regulators: Maintain open communication with the NCDMB and other regulators.

• Community Relations: Ensure alignment with community development agreements to mitigate local opposition.

7. Monitor and Evaluate Performance

• Post-Tender Reviews: Analyze outcomes of previous bids to refine the strategy.

• KPIs: Track key performance indicators, including win rates, client feedback, and compliance levels.

8. Submission and Follow-Up

• Meet Deadlines: Submit your tender on time, ensuring all requirements are met.

• Post-Submission Follow-Up: After submission, follow up with the client to confirm receipt and address any additional questions or clarifications they may have.

Building Strong Technical Partnerships with OEMs

The importance of forging partnerships with technical partners to enhance the company’s capabilities and credibility.

1. Partner Selection: When selecting technical partners, it’s crucial to evaluate their expertise in relevant fields. Look for partners with a deep understanding of the specific technologies or services that complement your offerings. This ensures you can provide comprehensive solutions to clients, enhancing your competitiveness in the market. Choose partners with a demonstrated history of success in their industry. This includes reviewing case studies, client testimonials, and past project outcomes. A proven track record provides assurance of their capability to deliver on promises and adapt to challenges.

2. Long-term Relationships:

Trust-Building: Build trust through consistent, transparent communication and by honoring commitments. Transparency in sharing information and decision-making fosters confidence and credibility between partners, laying a strong foundation for enduring partnerships.

Creating Compelling Technical and Commercial Proposals

1. Meet the expected technical requirements: Having the right understanding of the scope will enable you to get an idea on how to meet the client’s technical requirements, this is the first step in having a successful bid. The technical requirements are usually detailed. Bolster your claims with real- world evidence. Include evidence of past projects and job completion certificate that showcase successful projects similar to the prospective tender, emphasizing quantifiable results. Use direct job completion certificates from satisfied clients as testimonials to add authenticity and credibility to your expertise.

2. Commercial Viability: Conduct market research to understand pricing benchmarks within the industry. Position your pricing competitively by offering tiered pricing options that provide value while remaining attractive to potential clients.

In Nigeria’s oil and gas sector, regulatory and compliance adherence is a strategic necessity, building trust, mitigating risks, and improving efficiency while fostering sustainability and community relations. Quality assurance plays a crucial role in upholding high standards in tendering processes. By promoting continuous improvement, adopting innovative training, and leveraging technology, organizations can enhance the quality and integrity of their tender submissions. This focus on quality not only boosts the chances of securing tenders but also strengthens stakeholder relationships and drives long-term success. Viewing quality assurance as a strategic asset can transform tendering processes and enhance organizational reputation.

Conclusion

A strategic and well-coordinated approach to tendering, emphasizing efficiency, innovation, and continuous improvement, is key to thriving in a competitive landscape. By fostering collaboration, leveraging technology, and ensuring the relevance and quality of submissions, organizations can enhance their chances of winning bids while strengthening stakeholder relationships. This commitment transforms tendering into a powerful tool for long-term growth and success.

References

By – Adeoluwa Oyemosu – Project Analyst

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Abdul-Hakeem Dan’Azimi Bello

Head of Human Resources

Abdul-Hakeem Dan’Azimi Bello is a seasoned Human Resources and administrative leader with over 15 years of professional experience in driving organizational success through strategic human resources management and administrative functions. He has played a pivotal role in defining and implementing comprehensive HR strategies aligned with corporate goals. His expertise extends to talent acquisition, workforce management, training program development, and employee relations, supporting over 100 employees and facilitating major workforce expansions.

Bello has demonstrated a proven ability to manage complex projects, enhance operational efficiency, and foster a strong organizational culture. His technical skills include proficiency in tools like Microsoft Suite, Slack, and HR Information Systems (HRIS), making him adept in optimizing HR functions through data-driven decision-making and process improvement.

In addition to his operational excellence, AD Bello has earned various certifications in HR management and is an Associate of the Chartered Institute of Personnel Management (CIPM). He holds a BSc in Accounting from Bayero University, Kano and an MSc in Treasury Management. He has actively contributed to international HR initiatives and business strategy development.

Ebi Dike

Operations Manager

Ebi Dike is a dynamic and results-oriented operations and project manager. With a successful track record and specialization in pipeline and piping operations and projects spanning over 15 years, Ebi has consistently delivered exceptional results in complex and challenging project environments.
Ebi’s strong leadership abilities have allowed him to effectively coordinate cross-functional teams, fostering collaboration, and ensuring seamless communication throughout project lifecycles. Since his involvement in the Bonga FPSO project in 2004, Ebi has lead project teams on other FPSOs like Erha, Agbami, Akpo, Usan, and Egina. He has also led project teams on other offshore and land production facilities like Total’s Ikike Project, Chevron’s DSO – Meren GGCP & SONAM Projects, Interplant Corridor Escravos Pipeline Project, and Abiteye Sewage Treatment Plant Project.
Ebi’s technical expertise is complemented by his in-depth knowledge of industry regulations, safety protocols, and quality control standards. He consistently applies best practices and innovative solutions to optimize processes, enhance efficiency, and minimize risks. His ability to analyze complex situations and make data-driven decisions has proven invaluable in resolving challenges and delivering successful outcomes. As Operations Manager, Ebi is responsible for managing cross-functional field operations and delivering various complex projects across an array of clients.
Ebi has a Bachelor of Technology Degree in Geology and a Post Graduate Diploma in Computer Information Technology, both from Federal University of Technology, Owerri. He holds certifications in relevant areas such as piping design, equipment maintenance, safety, quality, and project management methodologies. He has also completed several training programmes in engineering design, construction, management, and improvement in operational processes. Ebi also actively pursues continuous learning opportunities and stays updated with the latest industry advancements.
Beyond oil and gas services, Ebi has interests in Systems and Design thinking, Data analytics, Agile concepts and principles, Lean Six Sigma principles, and emerging technologies. He is also an avid reader of different genres. Ebi is keen on making contributions to positively impact his immediate environment and the society at large.

Aigbe Abohi

Finance Manager

Aigbe Abohi is a seasoned professional with almost 10 years cognate industry experience in areas of accounting, financial management, financial planning and reporting, budgeting, and operational finance.

Prior to joining Bell Oil and Gas, he was a General Ledger Manager at Flour Mills of Nigeria Plc where he was responsible for general accounting operations, financial reporting, suggesting, and implementing sound internal control procedures, designing standard operating procedure manuals, preparing annual audited financial statements, as well as leading and coordinating external audit exercises for various companies in the agro allied value chain. He had also functioned as a finance and accounts team lead in other organizations where he oversaw finance and management reporting, accounts payables and receivables, inventory, payroll as well as fixed assets management.

In his current role at Bell Oil and Gas, he is responsible for supervising the finance team, coordinating a variety of finance and accounts activities including general accounting, accounts payables, payroll and treasury management, financial reporting and budgeting amongst others.
He holds a bachelor’s degree in Accounting from the University of Benin, and is a member of the Institute of Chartered Accountants of Nigeria (ICAN).

His hobbies include studying, sports, music, movies and networking.

Chinwe Ama-Boms

Plant Manager, OCTG Threading and Machining Plant

Chinwe is a result-driven and seasoned engineer with a proven history of plant setup and production optimization through improved efficiency, cost and waste reduction, enhanced product quality and resource management. He believes in getting it right the first time.
Chinwe is skilled in team leadership, training and development, strategic planning and innovative problem-solving.
This has been proven in 17+ years of professional experience in OCTG precision manufacturing where he has managed daily plant operations, ensuring safety with zero LTI, high product quality with zero scrap and enhanced productivity, leading cross-functional teams to achieve production targets and optimize processes, implementing cost-saving initiatives, resulting in significant expense reduction.
Chinwe holds a Bachelor of Engineering degree in Electrical/Electronic Engineering from the University of Port Harcourt and has acquired several tailored certifications in quality and production optimization.
Beyond oil and gas, he has an interest in family, reading different genres and good governance.

DR. (Engr). Chima Ibeneche

Chairman, Board of Directors

Dr. (Engr.) Chima has over 31 years of experience in the oil and gas industry. He spent his first three years with Schlumberger where he started out in 1978. He joined The Shell Petroleum Development Company (SPDC) in 1986. Chima was sent overseas on assignment as Senior Petrophysicist, Land Operations, in  Nederlandse Aardolle Maatschaappij, a Shell/ Esso company in Assen, northern Netherlands. He returned to Nigeria in 1989 to become the Divisional Chief Petrophysicist. He was later appointed Chief Petroleum Engineer in the Western Division of The Shell Petroleum Development Company of Nigeria (SPDC).

Dr. Chima drilled the first horizontal well in Shell’s operations in Nigeria. From 1994 to 1999, he served as the Petroleum Economist for Europe and Africa at Shell International Headquarters in The Hague, Holland; Acting Petroleum Engineering Manager, Western Division; Human Resources Manager; and Deputy Development Director and Corporate Well Engineering Manager and Service Director at SPDC. In 2004, he became the Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), pioneering offshore and deep-water exploration and production operations in Nigeria and bringing on stream the Bonga field. Chima joined NLNG in 2008 as the first Nigerian Managing Director from The Shell Petroleum Development Company of Nigeria (SPDC), a position he held between 2008 and 2012. During the same period, he was the Executive VP of Bonny Gas Transport Limited.

As the Chairman Board of Directors in Bell Oil & Gas, he is responsible for leading the Board on strategic matters and guiding the company on its strategic direction. Dr. Chima holds a degree in Electronics and Electrical Engineering from the University of Nigeria, Nsukka and a Doctorate Degree Honoris causa in Production Management from the Federal University of Technology, Owerri. He is a member of the Society of Petroleum Engineers (SPE), Institute of Directors and the Nigerian Economic Summit Group. He is also the former president of the Nigerian Gas Association and a fellow of the Energy Institute of London. He also serves on the board of several notable companies.

EJIRO ERIVONA

Position: Assistant General Manager

Ejiro Erivona has over 20 years of international experience in the upstream sector of the oil and gas industry. His expertise spans Business Operations Management , Business Development, Contracts and process management in the oil service industry as well as the Exploration and production segment of the Oil and Gas Business. 

He has managed key business divisions for various multinationals like Falcon, General Electric and Baker Hughes, working in various countries in Africa and North America, leading multidisciplinary and multicultural teams to achieve stellar business outcomes. Most recently, he held the position of Senior Manager, Operations at Nigeria’s Major E&P Independent- Conoil Producing Nigeria. 

Experienced in business startups, as well as new business generation, Ejiro has a track record of closing major deals in the IOCs, NOCs and marginal field operators in the sub-continent. 

He holds a Master of Business Administration (MBA) from the university of wales and a Bachelor of Science in Computer Science from the University of Benin. He is also an alumnus of the Administrative College of India ( ASCI) 

Ejiro has a “Black Belt” in people and change management and has pursued the same with great flair. 

KAYODE THOMAS

Chief Executive Officer

With a solid background in corporate strategy, business development, project management, business analysis and supply chain management, gained from key positions with various blue chip organisations, Kayode has many years international and domestic experience in driving businesses to achieve their strategic and corporate goals.

Prior to Bell Oil & Gas Ltd, he managed and delivered various strategic projects for multi-national corporations in Europe including business process re-engineering, organisation design, change management, ERP solutions, mergers & acquisitions, and post-merger business integration. He held strategic positions in different organisations including the Nigerian National Petroleum Corporation (London office), British Telecommunications (UK), Johnson & Johnson (UK), Cable & Wireless (UK) and GlaxoSmithKline (UK) where he managed and developed supply chain processes, new product introduction models, sales and operations planning policies, product rationing strategies, customer services and performance management methodologies across Europe. His various achievements led to him being named the Glaxo Wellcome IIP Award winner in 1998.

A finalist at the 2011 Ernst & Young Entrepreneur of the Year Award, and a founding director of Bell Oil & Gas, Kayode is a seasoned entrepreneur with a successful track record of leadership in cross-functional teams. At Bell Oil & Gas Ltd where he has held the position of CEO since inception, Kayode is responsible for corporate strategy, business planning, major projects development, change management, corporate governance, strategic alliances, brand management and corporate social responsibility. He is also responsible for the overall direction, growth and expansion of the company.

A strong advocate of continuous learning, Kayode is an ardent reader of a range of books covering leadership, motivation, relationship building, crime, autobiographies, and Christian literature. He is also a presenter and speaker at international conferences with specific interests in Strategic Alliances, Nigerian Content, and Entrepreneurship.

Kayode is an avid animal lover, with interests in exotic breeds of dogs, parrots, horses and wildlife. He is also a staunch Formula 1 follower, a lover of cricket, rugby, snooker, polo and sailing.

A Harvard Business School and Warwick Business School alumnus, Kayode is a highly motivated and articulate professional who brings with him, deep business insights, strategic thinking, and extensive management and business development experience and expertise spanning many key business areas.

A Certified Management Consultant (CMC), Kayode serves on the board of a number of companies, including several start-ups, provides advisory services to many organisations, within and outside the oil industry and supports young aspiring entrepreneurs in translating ideas into business reality. Kayode is also the founder and chairman of Rifugio Communications, a leading mobile phone retail and enterprise solutions provider in Nigeria. He holds a B.SC (Hons) Degree in Physics, an MSc in Advanced Manufacturing Systems, an MBA and a Doctorate Degree in Business Administration with research interest in Strategic Alliances and Implications for Local Capacity Development in the Nigerian Oil & Gas industry.

Kayode is a member of the Institute of Directors, the Nigerian Institute of Management and a Fellow of the Institute of Management Consultants (IMC-Nigeria).

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