Kyari urged all industry players to collaborate to reduce production costs and enhance output to target levels.
By Johnson Atoukudu
The Nigerian National Petroleum Company Limited (NNPCL) has announced a state of emergency regarding crude oil production.
Mele Kyari, the Group Chief Executive Officer of NNPCL, revealed this on Tuesday during his keynote address at the opening ceremony of the 23rd 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 mentioned that a detailed asset analysis revealed Nigeria can produce two million barrels of crude oil per day without deploying new rigs, with the primary obstacle being the industry’s delayed response.
The NNPCL chief said this “war” will prompt the company and its partners to immediately eliminate all barriers to efficient production, including delays in procurement processes, which have been a significant challenge in the industry.
Addressing medium- to long-term measures to boost and sustain production, Kyari said NNPCL plans to replace all old crude oil pipelines that were built over four decades ago.
The company will also implement a rig-sharing program with its partners to ensure that production rigs remain in the country for four to five years, which aligns with standard practices in most countries.
Kyari urged all industry players to collaborate to reduce production costs and enhance output to target levels.
He reaffirmed NNPCL’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 country’s economic prosperity.
Additionally, Kyari noted that NNPCL has embraced the presidential compressed natural gas (CNG) initiative and, in collaboration with partners like NIPCO Gas, has constructed several CNG stations.
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