NNPC Ltd. has imposed a state of urgency on production in Nigeria’s oil and gas industry in an effort to boost the country’s crude oil output and reserves.
This was revealed by Mr. Mele Kyari, the Group Chief Executive Officer of NNPC Ltd., during a keynote speech on Tuesday at the inauguration of the 23rd Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja.
We shall now adjourn the discussion. We have declared war on the obstacles impeding our ability to produce crude oil. War is war. We have the appropriate equipment. We are aware of what to combat. At the asset level, we are aware of what needs to be done. Our partners have been involved. Additionally, we will collaborate to enhance the situation,” the GCEO declared.
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He claims that after a thorough asset analysis, Nigeria can easily produce two million barrels of crude oil per day without the need to send out new rigs. However, the biggest obstacle to doing so is that the participants have not been able to move quickly enough.
According to him, the “war” would assist NNPC Ltd. and its partners in swiftly removing all barriers to productive and efficient production that have been identified, including procurement process delays that have become a problem for the sector.
In terms of medium- to long-term initiatives to increase and maintain production, Kyari stated that NNPC Ltd. would replace all of the outdated crude oil pipelines that were constructed more than 40 years ago. Additionally, the company would launch a rig sharing program with its partners to guarantee that production rigs remain in the nation for the typical four to five years that they do in most other countries.
He urged all industry participants to work together to lower production costs and increase output to desired levels.
He reaffirmed the company’s commitment to making investments in vital midstream gas infrastructure, such as the Ajaokuta-Kaduna-Kano gas pipeline and the Obiafu-Obrikom-Oben (OB3) pipeline, in order to increase domestic gas production and supply for power generation, industrial development, and national economic prosperity.
On Compressed Natural Gas (CNG), Kyari observed that NNPC Ltd. has since keyed into the Presidential CNG drive, adding that in conjunction with partners such as NIPCO Gas, NNPC Ltd. has built a number of CNG stations, 12 of which will be commissioned on Thursday in Lagos and Abuja.
The opening ceremony of the NOG Energy Week also saw goodwill messages and keynotes presented by 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 as well as the Chairman, Independent Petroleum Producers Group (IPPG), Mr. Abdulrazaq Isa.
NNPC Ltd. is the Principal Sponsor of 2024 NOG Energy Week Conference & Exhibition which has as its theme “showcasing opportunities, driving investment and meeting energy demand.”
Olufemi O. Soneye
Chief Corporate Communications Officer
NNPC Ltd.
Abuja.
July 2nd, 2024
