In a decisive move to boost Nigeria’s crude oil production and expand its reserves, NNPC Ltd has declared a state of emergency on production in the nation’s oil and gas industry. The Group Chief Executive Officer of NNPC Ltd, Mr. Mele Kyari, announced this during a keynote address at the opening ceremony of the 23rd edition of the Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja on Tuesday.
“We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production. War means war. We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners, and we will work together to improve the situation,” Kyari declared.
According to Kyari, a detailed analysis of assets revealed that Nigeria can produce two million barrels of crude oil per day without deploying new rigs. However, the major impediment to achieving this remains the inability of players to act in a timely manner. The “war” on production challenges will help NNPC Ltd. and its partners swiftly address obstacles such as procurement delays.
In medium to long-term measures aimed at boosting and sustaining production, Kyari said NNPC Ltd. plans to replace all old crude oil pipelines built over four decades ago and introduce a rig-sharing programme with its partners. This will ensure that production rigs stay in the country for four to five years, aligning with standard practices in other regions.
Kyari called on all industry players to collaborate in reducing production costs and achieving target levels. He reaffirmed the company’s commitment to investing in critical midstream gas infrastructure such as the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano gas pipelines to enhance domestic gas production and supply for power generation, industrial development, and economic prosperity.
Regarding Compressed Natural Gas (CNG), Kyari noted that NNPC Ltd. has actively participated in the Presidential CNG drive. In partnership with NIPCO Gas, NNPC Ltd. has built several CNG stations, with 12 set to be commissioned on Thursday in Lagos and Abuja.
The opening ceremony of NOG Energy Week also featured goodwill messages and keynotes from notable figures, including the Secretary General of the Organisation of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais; Secretary General of the Gas Exporting Countries Forum (GECF), Engr. Mohamed Hamel; Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo; Special Adviser to the President on Energy, Ms. Olu Verheijen, and the Chairman of the Independent Petroleum Producers Group (IPPG), Mr. Abdulrazaq Isa.
NNPC Ltd. is the principal sponsor of the 2024 NOG Energy Week Conference & Exhibition, themed “Showcasing Opportunities, Driving Investment, and Meeting Energy Demand.”
