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 within the country’s oil and gas industry.
The announcement was made by the Group Chief Executive Officer of NNPC Ltd, Mr. Mele Kyari, during his keynote address at the opening ceremony of the 23rd 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 stated emphatically.
Kyari detailed that a comprehensive analysis of assets indicates Nigeria can produce two million barrels of crude oil per day without new rigs. However, the primary barrier is the industry’s failure to act swiftly.
The “war” declared by Kyari aims to eliminate obstacles to efficient production, such as delays in procurement processes that have plagued the industry.
Looking ahead, Kyari outlined NNPC Ltd’s medium to long-term strategies, including replacing outdated crude oil pipelines over four decades old and implementing a rig sharing programme with partners. This programme ensures production rigs remain in the country for four to five years, aligning with global standards.
Kyari also urged all industry players to collaborate on reducing production costs and achieving target production levels.
He reaffirmed NNPC Ltd’s commitment to investing in crucial midstream gas infrastructure projects like the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano gas pipelines. These investments are crucial for boosting domestic gas production and supply, driving power generation, industrial development, and economic prosperity.
On Compressed Natural Gas (CNG), Kyari highlighted NNPC Ltd’s alignment with the Presidential CNG drive. In partnership with entities such as NIPCO Gas, NNPC Ltd has constructed several CNG stations, with 12 new stations set to be commissioned on Thursday in Lagos and Abuja.
The NOG Energy Week’s opening ceremony also featured goodwill messages and keynotes from distinguished 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, the principal sponsor of the 2024 NOG Energy Week Conference & Exhibition, embraces the theme “Showcasing Opportunities, Driving Investment, and Meeting Energy Demand.”
