NNPCL declares state of emergency on crude oil production

The Nigerian National Petroleum Company Limited, NNPCL, has declared a state of emergency on crude oil production.

Group Chief Executive Officer of NNPCL, Mele Kyari, made this known on Tuesday in a keynote address at the opening ceremony of the 23rd edition of the Nigeria Oil and Gas Conference and Exhibition (NOG Energy Week) in Abuja.

According to him: “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. We know what we have to do at the level of assets. We have engaged our partners. And we will work together to improve the situation.”

Kyari further stated that a detailed asset analysis revealed Nigeria can produce two million barrels of crude oil per day without deploying new rigs, adding that the primary obstacle is the inability of industry players to act promptly.

The NNPCL boss said the war will make the company and its partners immediately remove all identified barriers to efficient production, including delays in procurement processes, which have become a challenge in the industry.

Speaking on the medium- to long-term measures to boost and sustain production, Kyari said NNPC will replace all the old crude oil pipelines built over four decades ago.

He said the company will 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 countries.

The NNPC boss urged all players in the industry to synergize towards reducing the cost of production and enhancing production to target levels.

He reiterated 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 the economic prosperity of the country.

He said NNPCL has since keyed into the presidential compressed natural gas (CNG) drive, and, in collaboration with partners like NIPCO Gas, has constructed several CNG stations.