Many have been interchanging the name NipeX and NAPIMS to mean the same thing in Nigerian Oil and Gas sector but they are not really the same.
What is NipeX?
NipeX (Nigerian Petroleum Exchange) is an electronic one-stop transaction centre that improves on value procurement in the oil and gas industry and institutionalize world-class contracting processes in Nigeria. The Nigerian Petroleum Exchange (NipeX) is a Division of NNPC, a Corporate Service Unit of NNPC.
All the Oil and Gas companies in Nigeria submit contracts/ jobs of a particular value (in monetary value) to NipeX systems to manage the bidding systems and awarding of such contract(s)/ job(s).
Read: Local Content Registration (NOGIC JQS or NCEC)
What is NAPIMS?
The National Petroleum Investment Management Services (NAPIMS) is a Corporate Services Unit (CSU) in the Exploration and Production (E&P) Directorate of the NNPC charged with the responsibility of managing Nigeria Government’s investment in the UpStream sector of the Oil and Gas industry.
NIPEX: (Nigeria Petroleum Exchange) is an arm of National Petroleum Investment Management Services (NAPIMS). It is an electronic one-stop transaction centre that improves on value procurement in the oil and gas industry and institutionalizes world-class contracting processes in Nigeria. The electronic contracting platform uses product codes to identify the type of products and services a company will have as an option and whether it is permitted to operate in the Nigerian oil and gas sector.
Read: Oil & Gas Business Permits/License Registration
To register a company, the Department of Petroleum Resources (DPR) regulates the activities and issue licences to companies participating in the oil and gas sector while Nigeria Petroleum Exchange (NIPEX) is a platform where servicing companies can bid and tender for contracts from multinational and national companies. If a company is registered with NIPEX it means the company is registered to do business with all oil companies in Nigeria in its field of expertise.
It is pertinent for companies registering under NIPEX to select the right product code that fits the company services. Where this is competently done, the company will be invited for NIPEX Jobs that the company can competently do.
Who Can obtain DPR PERMITS & Register company with NIPEX?
There are certain professional and registered private bodies given the responsibility to register a company in Nigeria. Such as Members of the Nigeria Bar Association (NBA), Business Support Firms, accredited professionals or Business Promoters and so many others.
The requirements for NIPEX registration are complex and many. Any company intending to register should contact NNPC directly or use Business Support Service firm in Nigeria to complete the registration. See list of NipeX requirements as a new Vendor.
Read: DPR Permits Requirements & Cost
Conclusion
The oil and gas industry service permit is a statutory requirement for Nigerian registered companies seeking to render services in the oil and gas industry. Certificates are given upon completion of this registration process. To set up a business to provide goods or service in the Nigerian Oil and Gas, it is important to register for the DPR Permits and NIPEX which is a prerequisite to enter the industry.
To apply for DPR permits, (see DPR Permit List and Requirements) one must ensure that the company has been duly incorporated by the Corporate Affairs Commission, obtain NSITF Certificate, obtain Tax Clearance Certificate and more. See list of DPR permits requirements.