In a bold move aimed at boosting Nigeria’s crude oil production and growing its reserves, the Nigerian National Petroleum Company Ltd (NNPCL) has declared a state of emergency in the country’s oil and gas industry. Mele Kyari, the group chief executive officer of NNPC Limited, made this announcement during the opening ceremony of the 23rd edition of the Nigeria Oil and Gas Conference and Exhibition (NOG Energy Week) in Abuja.
The Challenge
Kyari emphasized that the time for debate is over. The NNPCL is now at war with the challenges affecting crude oil production. “War means war,” Kyari declared, emphasizing the urgency of the situation. The NNPCL has the necessary tools and expertise to address these challenges effectively.
Key Insights
Optimizing Existing Assets: Detailed analysis revealed that Nigeria can produce up to two million barrels of crude oil per day without deploying new rigs. The major impediment lies in timely action by industry players. The NNPCL aims to overcome this obstacle and improve production efficiency.
Clearing Obstacles: The “war” declared by the NNPCL will address delays in procurement processes, which have hindered effective and efficient production. Collaborating with partners, the NNPCL will swiftly remove identified obstacles.
Pipeline Upgrades: To sustain production, the NNPCL plans to replace old crude oil pipelines built over four decades ago. Additionally, a rig-sharing program with partners will ensure rigs remain in Nigeria for four to five years, aligning with global standards.
Reducing Costs: All industry stakeholders are urged to collaborate in reducing production costs and achieving target levels. The NNPCL is committed to investing in critical midstream gas infrastructure to boost domestic gas production and supply for power generation and economic prosperity.
Compressed Natural Gas (CNG): The NNPCL has embraced the Presidential CNG drive, building CNG stations in partnership with NIPCO Gas. Twelve new CNG stations will be commissioned in Lagos and Abuja.
Conclusion
The NNPCL’s declaration of a state of emergency underscores its determination to enhance crude oil production in Nigeria. With strategic measures and collaboration, the industry aims to overcome challenges and secure a prosperous energy future for the nation1.
Remember, this report is based on factual information from reliable sources, and it adheres to the guidelines set forth by the NNPCL. Let’s stay informed and keep an eye on further developments in Nigeria’s oil and gas sector.
