By Joke Kujenya
A STATE of emergency has been declared on crude oil production in Nigeria by the Nigeria National Petroleum Company (NNPC) Ltd, aiming to increase output and grow reserves.
Group Chief Executive Officer Mr. Mele Kyari announced the initiative at the 23rd Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja on Tuesday.
Kyari emphasized the urgent need to tackle challenges hindering oil production. “We have declared war on the issues affecting our crude oil production. We possess the right tools, know what to address, and have engaged our partners. We will collaborate to improve the situation,” he asserted.
Detailed analysis of assets indicates that Nigeria can produce two million barrels of crude oil per day without deploying new rigs.
The main obstacle, according to Kyari, is the industry’s sluggish response to necessary actions.
NNPC Ltd also plans to eliminate these obstacles swiftly, addressing delays in procurement processes that have plagued the sector. Medium to long-term measures include replacing old crude oil pipelines, some of which are over four decades old. Additionally, a rig-sharing programme with partners will ensure rigs remain in the country for four to five years, aligning with global standards.
Kyari called on industry players to work together to reduce production costs and boost output to target levels, and reaffirmed NNPC Ltd’s commitment to investing in critical midstream gas infrastructure, such as the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines, to enhance domestic gas production and supply. This investment aims to support power generation, industrial development, and economic growth.
On the topic of Compressed Natural Gas (CNG), Kyari highlighted NNPC Ltd’s involvement in the Presidential CNG initiative.
In partnership with NIPCO Gas, NNPC Ltd has built several CNG stations, with 12 new stations set to be commissioned on Thursday in Lagos and Abuja.
The NOG Energy Week’s opening ceremony featured notable speakers, including OPEC Secretary General Haitham Al Ghais, GECF Secretary General 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 IPPG Chairman Mr. Abdulrazaq Isa.
Olufemi O. Soneye, Chief Corporate Communications Officer of NNPC Ltd, stated in a release that NNPC Ltd is the Principal Sponsor of the 2024 NOG Energy Week Conference & Exhibition.
The event, themed “Showcasing Opportunities, Driving Investment, and Meeting Energy Demand,” aims to highlight investment opportunities and strategies to meet Nigeria’s energy needs.
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