Reports say the Nigerian National Petroleum Company Limited, NNPCL, has declared a state of emergency on crude oil production.
Mele Kyari, the Group Chief Executive Officer of NNPCL, stated this on Tuesday while delivering 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.
He said, “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.”
He stated further that asset analysis showed Nigeria can produce two million barrels of crude oil per day without deploying new rigs, adding that the primary hindrance is industry players’ failure to act promptly.
Kyari said the company and its partners would immediately remove all identified barriers to effective production, including delays in procurement processes because of the war.
The NNPCL boss, while addressing medium—to long-term measures to boost production, said the petroleum company would replace old crude oil pipelines that are over forty years old.
He mentioned that the company plans to implement a rig-sharing initiative with its partners to ensure that production rigs remain in the country for four to five years, which aligns with the standard practice in most nations.
The NNPC leader encouraged all industry participants to collaborate to decrease production costs and improve production to specified levels.
He restated the corporation’s dedication to investing in crucial midstream gas infrastructure such as the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines to enhance domestic gas production and supply for electricity generation, industrial growth, and the economic development of the country.
He informed that NNPCL has already joined the presidential compressed natural gas (CNG) initiative and, together with partners like NIPCO Gas, has constructed multiple CNG stations.