Nigerian National Petroleum Corporation Limited has declared a state of emergency in the oil and gas industry to increase Nigeria’s crude oil production and reserves.
The Group Chief Executive Officer of NNPC Ltd, Mr. Mele Kyari, disclosed this in a keynote address at the opening ceremony of the 23rd edition of the Nigeria Oil & Gas Conference and Exhibition in Abuja, on Tuesday, according to the statement signed by the Chief Corporate Communications Officer, Olufemi Soneye.
Kyari said “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.”
According to him, a rigorous analysis study found that Nigeria can easily produce two million barrels of crude oil per day without deploying additional rigs, but the greatest hindrance to achieving this is the incapacity of parties to act promptly.
He stated that the “war” will assist NNPC Ltd. and its partners in quickly removing all identified barriers to effective and efficient production, such as procurement delays, which have become a challenge in the industry.
On medium to long-term measures aimed at increasing and sustaining production, Kyari underlined that NNPC Ltd. would replace all of the old crude oil pipelines built over four decades ago, as well as implement a rig-sharing program with its partners to ensure that production rigs remain in the country for four to five years, as is standard practice in most countries.
He urged all industry players to work together to reduce production costs and increase output to desired 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 increase domestic gas production and supply for power generation, industrial development, and the country’s economic prosperity.
Concerning compressed natural gas (CNG), Kyari stated that NNPC Ltd. has since joined the Presidential CNG push and that in collaboration with partners such as NIPCO Gas, NNPC Ltd. has constructed several CNG stations, 12 of which would be commissioned on Thursday in Lagos and Abuja.
The opening ceremony of the NOG Energy Week also saw goodwill messages and keynotes presented by 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 as well as the Chairman, 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.”
