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LAGOS – NNPC, Nigeria’s state oil firm, announced an oil and gas production emergency on Tuesday.
Mele Kyari, the company’s Group CEO, revealed this during a keynote speech at the 23rd Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja on Tuesday.
He stated, “We’ve made a firm decision to end discussions. We’ve initiated a battle against the issues impacting our oil production. This is a serious battle. We possess the necessary resources.
We understand the challenges. We have clear plans for our assets. Collaboration with our partners is in place. Together, we will enhance the current circumstances.”
He mentioned that after assessing assets thoroughly, it was evident that Nigeria could achieve a daily crude oil production of two million barrels without requiring additional rigs. However, the main obstacle hindering this goal is the lack of prompt action by stakeholders.
The declared “war” aims to swiftly address all identified barriers to productive and efficient operations, including challenges like procurement delays that are prevalent in the industry.
For strategies focused on enhancing and maintaining production in the medium to long term, Kyari mentioned that NNPC Ltd. plans to replace aging crude oil pipelines constructed more than four decades ago. Additionally, they intend to implement a rig sharing initiative with partners to ensure rigs remain in the country for four to five years, aligning with global standards.
He urged industry participants to work together to cut production costs and increase production to meet set objectives.
Kyari emphasized the company’s dedication to investing in vital gas infrastructure like the OB3 and Ajaokuta-Kaduna-Kano gas pipelines to enhance domestic gas production for power generation, industrial growth, and the nation’s economic advancement.
Regarding Compressed Natural Gas (CNG), Kyari noted NNPC Ltd.’s alignment with the Presidential CNG initiative. He mentioned the establishment of several CNG stations in collaboration with partners like NIPCO Gas, with plans to inaugurate 12 stations in Lagos and Abuja on Thursday.
During the NOG Energy Week’s opening ceremony, messages of goodwill and keynotes were delivered by prominent figures including the Secretary General of OPEC, Haitham Al Ghais; the Secretary General of GECF, Engr. Mohamed Hamel; 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 IPPG.
NNPC Ltd. is the main sponsor of the 2024 NOG Energy Week Conference & Exhibition, centered around the theme “highlighting opportunities, stimulating investments, and addressing energy needs.”
