As part of efforts to boost Nigeria’s crude oil production and enhance its reserves, the Nigeria National Petroleum Company Limited (NNPC Ltd) has taken decisive action by declaring a state of emergency in the oil and gas sector. Mele Kyari, NNPC Ltd’s Group Chief Executive Officer, announced this during the 23rd Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja.
Kyari emphasized the urgency of increasing oil production to strengthen local capacity, aiming to close the current gap where Nigeria produces between 1.2 to 1.4 million barrels per day, falling short of the potential two million barrels per day. He stressed the need to address challenges hindering production, stating, “It is time to take the bulls by the horns by tackling those challenges that are creating obstacles to Nigeria’s crude oil production.”
“We can’t continue talking, we cannot continue debating,” Kyari asserted, highlighting the inefficacy of prolonged debates in yielding tangible results in oil production. He called for unified efforts among stakeholders to overcome obstacles, urging, “Debate doesn’t produce oil, debate produces conflict.”
Kyari outlined the strategic focus on increasing production through enhanced investment, technology deployment, and operational efficiency. Despite recent declines attributed to various factors including oil theft and operational challenges, he disclosed, “Recent data analysis shows we are capable of producing up to two million barrels per day without additional rigs.”
Acknowledging the industry’s systemic issues like access to capital and operational delays, Kyari underscored NNPC’s proactive stance: “We have declared a war and war means war. We are committed to addressing every aspect affecting production from security to infrastructure integrity.”
Addressing infrastructure challenges, Kyari announced plans to replace outdated pipelines crucial for crude transportation, stating firmly, “No debate. Every partner must utilize the new infrastructure.” He emphasized the national significance of infrastructure renewal and pledged NNPC’s determination to execute these plans swiftly.
Looking ahead, Kyari urged industry players to collaborate in reducing production costs and increasing output to targeted levels. He highlighted NNPC’s investments in critical gas infrastructure projects such as the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano pipelines, aimed at boosting domestic gas supply for power and industrial development.
Regarding Compressed Natural Gas (CNG), Kyari noted NNPC’s alignment with the Presidential CNG initiative, highlighting partnerships to establish CNG stations across key cities. He announced the upcoming commissioning of 12 new CNG stations in Lagos and Abuja, underscoring NNPC’s commitment to diversifying energy resources.
The event featured goodwill messages and keynote addresses from international and local dignitaries, including representatives from OPEC, GECF, and Nigerian government officials, reinforcing collaborative efforts towards enhancing Nigeria’s energy sector resilience and sustainability.
