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Oil Production: NNPC Declares States Of Emergency

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The Nigerian National Petroleum Corporation, NNPC, has declared a state of emergency in its operation to ramp up oil production.

The Group Chief Executive Officer of NNPC Ltd, Mele Kyari, disclosed this during the opening of the 23rd Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja on Tuesday.

The CEO’s remarks were contained in a press statement issued by the Chief Corporate Communications Officer, Olufemi Soneye. 

The statement quoted Kyari as saying, “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,”

Highlighting the potential of Nigeria’s existing assets, Kyari revealed that Nigeria could feasibly produce two million barrels of crude oil per day without the need for new rigs.

However, he emphasized that inefficiencies and delays in procurement processes have been significant barriers to achieving optimal production levels.

Kyari outlined immediate actions to streamline operations, including clearing obstacles that hinder effective production.

Kyari said, “On medium to long-term measures aimed at boosting and sustaining production, Kyari said NNPC Ltd. would replace all the old crude oil pipelines built over four decades ago and also introduce a rig sharing programme with its partners to ensure that production rigs stay in the country for between four and five years which is the standard practice in most climes.

“He called on all players in the industry to collaborate towards reducing the cost of production and boosting production to target levels. He expressed the Company’s commitment to investing in critical midstream gas infrastructure such as the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines to boost domestic gas production and supply for power generation, industrial development and economic prosperity of the country.”

He announced plans to replace outdated crude oil pipelines and introduce a rig-sharing program aimed at maximising production capabilities over extended periods, mirroring global industry standards.

Calling for collaboration across the sector, Kyari urged industry players to unite efforts towards reducing production costs and achieving targeted production levels.

He affirmed NNPC Ltd’s commitment to investing in critical gas infrastructure projects such as the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano gas pipelines, aimed at bolstering domestic gas supply for national development.

Regarding Compressed Natural Gas (CNG), Kyari highlighted NNPC Ltd’s participation in the Presidential CNG initiative, noting the establishment of several CNG stations in partnership with NIPCO Gas, with plans to commission additional stations in Lagos and Abuja.

The NOG Energy Week’s opening ceremony featured keynotes from global and national energy leaders, including representatives from OPEC, the Gas Exporting Countries Forum (GECF), and Nigerian government officials.

The opening ceremony of the NOG Energy Week featured keynote addresses and goodwill messages from prominent figures in the global and Nigerian energy sectors. Among the distinguished speakers were Haitham Al Ghais, Secretary General of the Organisation of the Petroleum Exporting Countries (OPEC); Engr. Mohamed Hamel, Secretary General of the Gas Exporting Countries Forum (GECF); Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil); Rt. Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas); Ms. Olu Verheijen, Special Adviser to the President on Energy; and Mr. Abdulrazaq Isa, Chairman of the Independent Petroleum Producers Group (IPPG).

NNPC served as the Principal Sponsor of the 2024 NOG Energy Week Conference & Exhibition, themed “showcasing opportunities, driving investment and meeting energy demand.”

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