NNPC Ltd Declares State of Emergency on Crude Oil Production, Calls for Collaboration to Reduce Costs

ABUJA – In a bid to boost Nigeria’s crude oil production and reserves, the Nigerian National Petroleum Company Limited (NNPC Ltd) has declared a state of emergency on production in the country’s oil and gas industry.

Group Chief Executive Officer of NNPC Ltd, Mr. Mele Kyari, made this announcement during his keynote address at the opening ceremony of the 23rd edition of the Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja, on Tuesday.

According to him, a detailed analysis of assets revealed that Nigeria can conveniently produce two million barrels of crude oil per day without deploying new rigs, but the major impediment to achieving that remains the inability of players to act in a timely manner.

He said the “war” will help NNPC Ltd. and its partners to speedily clear all identified obstacles to effective and efficient production such as delays in procurement processes, which have become a challenge in the industry.

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 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.

On Compressed Natural Gas (CNG), Kyari observed that NNPC Ltd. has since keyed into the presidential CNG drive, adding that in conjunction with partners such as NIPCO Gas, NNPC Ltd. has built a number of CNG stations, 12 of which will be commissioned on Thursday, July 4, 2024, 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.

Kyari called on all stakeholders in the industry to collaborate towards reducing the cost of production and boosting production to target levels.

NNPC Ltd. is the Principal Sponsor of the 2024 NOG Energy Week Conference & Exhibition which has as its theme “showcasing opportunities, driving investment and meeting energy demand.”