NNPC Ltd has declared a state of emergency in Nigeria’s oil and gas sector to address production challenges.
Mr. Mele Kyari, the Group Chief Executive Officer of NNPC Ltd, made this announcement during his keynote address at the 23rd Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja on Tuesday.
“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, and we know what we have to do at the asset level. We have engaged our partners, and we will work together to improve the situation,” Kyari stated.
He explained that a thorough analysis of assets shows Nigeria can produce two million barrels of crude oil daily without new rigs. However, the major hurdle is the industry’s slow response time.
Kyari emphasized that this “war” will enable NNPC Ltd and its partners to swiftly eliminate obstacles to efficient production, such as delays in procurement processes.
For medium to long-term solutions, Kyari revealed that NNPC Ltd plans to replace all old crude oil pipelines, some over four decades old, and implement a rig-sharing program with partners to keep production rigs in the country for four to five years, aligning with global standards.
Kyari called on industry players to collaborate in reducing production costs and achieving target production levels.
He reiterated NNPC Ltd’s commitment to investing in critical midstream gas infrastructure, including the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano gas pipelines, to enhance domestic gas production and supply, supporting power generation, industrial development, and economic prosperity.
On Compressed Natural Gas (CNG), Kyari highlighted NNPC Ltd’s participation in the Presidential CNG initiative, noting the construction of several CNG stations in collaboration with partners like NIPCO Gas. Twelve of these stations will be inaugurated on Thursday in Lagos and Abuja.
The opening ceremony of the NOG Energy Week also featured goodwill messages and keynotes from notable figures, including 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; and Chairman of the 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.”
