Crude Oil Production Faces Emergency Intervention, NNPC Makes Bold Declaration

The Nigerian National Petroleum Corporation, Limited (NNPC), has officially announced a state of emergency concerning oil and gas production in Nigeria.
The announcement by the NNPC aims to enhance Nigeria’s crude oil production and expand its reserves.
During the opening ceremony of the 23rd edition of the Nigeria Oil &Gas Conference and Exhibition (NOG Energy Week) in Abuja on Tuesday, Mele Kyari, the Group Chief Executive Officer of NNPC Ltd, made this revelation in a keynote address.
“We have resolved to cease the discussions. We have declared a battle against the obstacles affecting our crude oil production. This is a serious endeavor. We possess the necessary tools, knowledge, and strategy to combat these issues effectively at the asset level. We have joined forces with our partners and are committed to working collaboratively to rectify the situation,” stated the GCEO.

Kyari highlighted that after a thorough evaluation of the assets, Nigeria has the capacity to produce two million barrels of crude oil daily without requiring new rigs. However, the primary challenge hindering this achievement is the failure of stakeholders to act promptly.

He emphasized that the “battle” will enable NNPC Ltd. and its partners to promptly eliminate all identified barriers to efficient production, particularly addressing delays in procurement processes, which have emerged as a significant challenge in the sector.
Regarding long-term strategies to enhance and sustain production, Kyari disclosed that NNPC Ltd. plans to replace all outdated crude oil pipelines constructed over four decades ago. Additionally, a rig-sharing program will be introduced with partners to ensure that production rigs remain in the country for a standard period of between four and five years, as commonly practiced in most regions.

Kyari urged all industry participants to collaborate in reducing production costs and achieving target production levels. He also reiterated the company’s dedication to investing in critical midstream gas infrastructure, such as the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano gas pipelines, to enhance domestic gas production and supply for electricity generation, industrial growth, and economic advancement in the nation.

In terms of Compressed Natural Gas (CNG), Kyari mentioned that NNPC Ltd. has aligned with the Presidential CNG initiative. In conjunction with partners like NIPCO Gas, NNPC Ltd. has established several CNG stations, with 12 set to be inaugurated in Lagos and Abuja on Thursday.
The NOG Energy Week opening ceremony also featured goodwill messages and keynotes delivered by distinguished personalities, including the Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais; the Secretary-General of the Gas Exporting Countries Forum (GECF), Engr. Mohamed Hamel; the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo; the Special Adviser to the President on Energy, Olu Verheijen, and the Chairman of the Independent Petroleum Producers Group (IPPG), Abdulrazaq Isa.