THE Nigerian National Petroleum Company (NNPC) Limited has announced a state of emergency regarding oil and gas production in Nigeria.
The Group Chief Executive Officer of NNPC, Mele Kyari, revealed this proactive stance during his opening speech at the 23rd edition of the Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja yesterday.
Kyari emphasized, “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,” he declared.
Based on a comprehensive asset evaluation, Kyari pointed out that Nigeria has the capacity to produce up to two million barrels of crude oil daily without the need for additional rigs.
However, the primary obstacle to achieving this lies in the delayed responses from industry stakeholders.
The declared “war” aims to swiftly tackle identified barriers, such as procurement delays, which have posed challenges within the sector.
Additionally, steps will be taken for long-term enhancements, including the replacement of aging crude oil pipelines and the implementation of a rig sharing initiative with partners to ensure rigs remain in the country for extended periods, aligning with global practices.
Kyari urged all industry participants to collaborate in reducing production costs and optimizing production levels.
He stressed NNPC’s commitment to investing in critical midstream gas infrastructure, like the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano gas pipelines, was highlighted to enhance domestic gas output for power generation, industrial growth, and overall economic prosperity.
Embracing the Presidential drive for Compressed Natural Gas (CNG), Kyari mentioned NNPC’s collaboration with partners, such as NIPCO Gas, in establishing multiple CNG stations, with 12 set for inauguration in Lagos and Abuja.
In addition to Kyari’s address, the event featured messages from key figures including Haitham Al Ghais, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), Mohamed Hamel, Secretary General of the Gas Exporting Countries Forum (GECF), and various government officials and industry representatives stressing the importance of collective efforts towards enhancing the sector’s efficiency and productivity.
