NNPCL Issues a State of Emergency Regarding Crude Oil Production

Olufemi Adeyemi

A state of emergency regarding the production of crude oil has been announced by the Nigerian National Petroleum Company Limited (NNPCL).

During the keynote presentation of the 23^rd Nigeria Oil and Gas Conference and Exhibition (NOG Energy Week) opening ceremony in Abuja on Tuesday, Mele Kyari, the Group Chief Executive Officer of NNPCL, made this statement.

He said, "We have made the decision to end the discussion. We've 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. And together, we shall endeavor to make things better.

According to Kyari, the main barrier is the unwillingness of industry participants to take swift action. He went on to say that a thorough asset study showed Nigeria could produce two million barrels of crude oil per day without deploying additional rigs.

The CEO of NNPCL asserted that the conflict will compel the organization and its partners to promptly eliminate any impediments to efficient production, including persistent procurement process delays that have become a challenge for the industry.

Speaking about the medium- to long-term strategies to increase and maintain output, Kyari stated that NNPC will replace every outdated crude oil pipeline that was constructed more than 40 years ago.

The company plans to implement a rig sharing program with partners to maintain production facilities in the country for four to five years, a practice commonly seen in most countries.

The NNPC chief urged all industry players to collaborate in order to lower production costs and achieve targeted production levels.

The company has restated its dedication to investing in essential midstream gas infrastructure, including the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines, to enhance domestic gas production and supply for power generation, industrial growth, and the economic advancement of the nation.

NNPCL has also adopted the presidential compressed natural gas (CNG) initiative and, in collaboration with organizations such as NIPCO Gas, has established numerous CNG stations.

July 03, 2024