NNPC Declares State of Emergency on Crude Oil Production, Targets 2 Million Barrels Per Day

In a move to bolster Nigeria’s crude oil production and expand its reserves, NNPC Ltd has declared a state of emergency on production within the country’s oil and gas sector.

The announcement was made by the Group Chief Executive Officer of NNPC Ltd, Mr. Mele Kyari, during his keynote address at the opening ceremony of the 23rd edition of the Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja on Tuesday, July 2, 2024.

“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 asserted.

Kyari revealed that a detailed analysis of Nigeria’s oil assets indicates the country can produce two million barrels of crude oil per day without the need for new rigs. However, the primary obstacle remains the inability of industry players to act swiftly.

“We know what to fight. We know what we have to do at the level of assets,” Kyari stated. “We have engaged our partners. And we will work together to improve the situation.”

NNPC Ltd aims to tackle all identified hurdles to efficient production, such as procurement delays, which have historically hampered the industry. In the medium to long term, Kyari outlined plans to replace aging crude oil pipelines, some of which were constructed over four decades ago. Additionally, a rig-sharing program with partners will be introduced to ensure rigs remain in the country for four to five years, aligning with global standards.

Kyari also called for industry-wide collaboration to reduce production costs and achieve targeted production levels. Emphasising the importance of unity, he said, “We need to work together to reduce the cost of production and boost production to target levels.”

NNPC Ltd remains committed to investing in critical midstream gas infrastructure, including the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano gas pipelines. These investments aim to enhance domestic gas production and supply, supporting power generation, industrial development, and the country’s economic prosperity.

On the topic of Compressed Natural Gas (CNG), Kyari noted that NNPC Ltd has actively supported the Presidential CNG drive. In collaboration with partners like NIPCO Gas, NNPC Ltd has constructed several CNG stations, with twelve set to be commissioned this Thursday in Lagos and Abuja.

The NOG Energy Week opening ceremony featured keynotes and goodwill messages from notable figures, including Haitham Al Ghais, Secretary General of the Organisation of the Petroleum Exporting Countries (OPEC); Engr. Mohamed Hamel, Secretary General of the Gas Exporting Countries Forum (GECF); Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil); Rt. Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas); Ms. Olu Verheijen, Special Adviser to the President on Energy; and Mr. Abdulrazaq Isa, Chairman of the Independent Petroleum Producers Group (IPPG).

NNPC Ltd. is the Principal Sponsor of the 2024 NOG Energy Week Conference & Exhibition, themed “showcasing opportunities, driving investment and meeting energy demand.”